SB408: Bill Text

SB408,17,20 e. A finding by the commission that the utility failed to negotiate in good faith under 47 USC 252 (a) (1).

SB408,17,23 f. A violation of the federal Telecommunications Act of 1996 or an order or regulation of the federal communications commission issued or promulgated under that act.

SB408,18,2 2. The commission finds that, after 2 years after the effective date of this subdivision .... [revisor inserts date], less than 50% of the residential access lines, or less than 50% of the business access lines, in the utility's service territory receive local exchange service from another telecommunications provider.

SB408,18,3 3. The commission finds any of the following:

SB408,18,5 a. The utility has the ability to maintain prices below cost, or above competitive price levels, for a significant period of time.

SB408,18,7 b. The utility's competitors are not able to obtain equal and reliable access to the utility's unbundled network elements or operational support systems.

SB408,18,9 c. The utility exercises market power in a manner that precludes the development of substantial and sustainable competition.

SB408,18,12 (c) Voluntary structural separation. Subject to the approval of the commission, a large price-regulated telecommunications utility may structurally separate its wholesale and retail operations into separate affiliates as provided in par. (d).

SB408,18,15 (d) Requirements for structural separation. For a large price-regulated telecommunications utility to structurally separate under par. (b) or (c), all of the following requirements must be satisfied:

SB408,18,18 1. The utility's wholesale affiliate must have officers, directors, employees, and publicly traded stock that are entirely separate from the officers, directors, employees, and publicly traded stock of the utility's retail affiliate.

SB408,18,20 2. No more than 50% of the publicly traded stock of the utility's wholesale affiliate may be owned by persons that are affiliated with the utility's retail affiliate.

SB408,18,22 3. The utility's retail and wholesale affiliates must operate independently of each other.

SB408,18,24 4. The utility's retail and wholesale affiliates must maintain separate books, records, and accounts.

SB408,19,5 5. The utility's retail and wholesale affiliates must conduct all business between each other on an arm's length basis, reduce all transactions between each other to writing that is available for public inspection, and account for all such transactions in accordance with accounting principles specified or approved by the commission.

SB408,19,8 6. The utility's retail affiliate must use the same operational support system interfaces that the utility's wholesale affiliate makes available to unaffiliated telecommunications providers.

SB408,19,9 7. Any other requirement specified by the commission must be satisfied.

SB408,19,17 (e) Transitional plans. The commission may approve a transitional plan submitted by a large price-regulated telecommunications utility that specifies a reasonable schedule for phasing in the utility's compliance with an order under par. (b) or for voluntary structural separation under par. (c), except that, after 3 years after the effective date of this paragraph .... [revisor inserts date], a wholesale affiliate of a utility that structurally separates under par. (b) or (c) may not market, offer, or provide any retail telecommunications service or related feature to any retail customer.

SB408,19,19 (f) Prohibitions. 1. A wholesale or retail affiliate of a large price-regulated telecommunications utility may not do any of the following:

SB408,19,21 a. Obtain credit under any arrangement that permits a creditor, upon default, to have recourse to the assets of the utility or another affiliate of the utility.

SB408,19,23 b. Discriminate between another affiliate of the utility and any other person in providing or procuring goods, services, facilities, or information.

SB408,19,25 2. A wholesale affiliate of a large price-regulated telecommunications utility may not transfer any network element to a retail affiliate of the utility.

SB408, s. 21 Section 21. 196.196 (8) of the statutes is created to read:

SB408,20,3 196.196 (8) Consultation with federal communications commission. (a) In this subsection, "end-user customer" has the meaning given in sub. (6) (a) 2.

SB408,20,7 (b) If the federal communications commission consults with the commission under 47 USC 271 (d) (2) (B), the commission shall advise against approving the petition of a large price-regulated telecommunications utility for interlata long distance authority if either of the following applies:

SB408,20,12 1. For a utility that has not structurally separated under sub. (7) (b) or (c), less than 25% of the utility's access lines serving residential end-user customers in the utility's service territory, or less than 25% of the utility's access lines serving business end-user customers in the utility's service territory, receive basic local exchange service from another telecommunications provider.

SB408,20,14 2. The commission determines that the utility has failed to meet the requirements of 47 USC 271 (c).

SB408, s. 22 Section 22. 196.196 (9) of the statutes is created to read:

SB408,20,23 196.196 (9) Just and reasonable rates; effect of petition. A large price-regulated telecommunications utility may petition the commission for a determination that its rates, as established under this section, are not just and reasonable. By filing such a petition, a large price regulated telecommunications utility rescinds its election to be price regulated and the commission shall impose cost-based, rate-of-return regulation on all products and services offered by the utility. A large price-regulated telecommunications utility may not elect to be price regulated within 3 years after filing a petition under this subsection.

SB408, s. 23 Section 23. 196.197 of the statutes is created to read:

SB408,21,2 196.197 Retail and wholesale telecommunications service quality. (1) Definitions. In this section:

SB408,21,3 (a) "End-user customer" has the meaning given in s. 196.196 (6) (a) 2.

SB408,21,4 (b) "Local exchange service" has the meaning given in s. 196.50 (1) (b) 1.

SB408,21,5 (c) "Network element" has the meaning given in s. 196.196 (7) (a) 1.

SB408,21,9 (d) "Repeat trouble report" means a trouble report made by an end-user customer or wholesale customer within 30 days after a large price-regulated telecommunications utility has resolved a problem regarding the same access line in response to a prior trouble report by the customer.

SB408,21,13 (e) "Trouble report" means a report by an end-user customer to a large telecommunications utility or wholesale customer, or by a wholesale customer to a large price-regulated telecommunications utility, about a problem regarding the end-user customer's access line or an access line used by the wholesale customer.

SB408,21,16 (f) "Wholesale customer" means a telecommunications provider that uses the services, products, or facilities of a large price-regulated telecommunications utility to provide telecommunications service to an end-user customer.

SB408,21,21 (2) Retail service standards. In addition to any standard required by the commission or agreed to by a large price-regulated telecommunications utility, a large price-regulated telecommunications utility shall, on a monthly basis, comply with each of the following standards in providing telecommunications services, products, or facilities to its end-user customers:

SB408,21,24 (a) Initiation of service. The utility shall begin providing local exchange service for 95% of the orders for such service by the utility's end-user customers no less than 5 business days after receiving an order.

SB408,22,3 (b) Service outages. The utility shall restore no less than 95% of local exchange service outages to end-user customers within 24 hours after an end-user customer reports the outage to the utility.

SB408,22,5 (c) Repeat trouble reports. The utility shall ensure that no more than 10% of all trouble reports are repeat trouble reports.

SB408,22,10 (d) Missed repair appointments. The utility shall keep no less than 90% of all appointments scheduled to install service or make repairs for the utility's end-user customers, excluding those appointments for which the utility gives 24-hour advance notice that the appointment will be missed. The commission shall promulgate rules to administer the requirements of this paragraph.

SB408,22,13 (e) Service center response times. The utility shall ensure that in no less than 90% of all calls by end-user customers to the utility's service center the customer is connected to a live service representative within 20 seconds after the call begins.

SB408,22,19 (3) Wholesale service standards. In addition to complying with any standard required by the commission or agreed to by a large price-regulated telecommunications utility, a large price-regulated telecommunications utility shall, on a monthly basis, comply with each of the following standards in providing telecommunications services or products or network elements to each of its wholesale customers:

SB408,22,22 (a) Service outages. The utility shall restore no less than 95% of service outages affecting end-user customers with access lines used by the wholesale customer within 24 hours after the wholesale customer reports the outage to the utility.

SB408,23,2 (b) Response to orders. Except as provided in par. (c), the utility shall ensure that no less than 95% of the wholesale customer's orders for unbundled loops, unbundled network platforms, or resale are filled within 5 business days after the utility receives an order.

SB408,23,6 (c) Response to orders with agreed delivery times. If the utility and a wholesale customer agree upon a time other than 5 business days for filling an order for unbundled loops, unbundled network platforms, or resale, the utility shall ensure that no less than 95% of such orders are filled within the agreed time.

SB408,23,9 (d) Repeat trouble reports. The utility shall ensure that no more than 10% of all trouble reports about the utility's access lines that are used by the wholesale customer are repeat trouble reports.

SB408,23,13 (e) Order problems. The utility shall ensure that, for no less than 90% of all orders for unbundled loops, unbundled network platforms, or resale, a wholesale customer does not report a problem about the order to the utility during the 7-day period beginning after the date on which the order is filled.

SB408,23,19 (4) Forfeitures; compensation. (a) Retail service. 1. If a report filed under sub. (5) (a) 1. demonstrates, or if the commission otherwise determines, that a large price-regulated telecommunications utility that has not structurally separated under s. 196.196 (7) (b) or (c) has failed to comply with a standard under sub. (2), the commission shall, except as provided in par. (d), directly assess against the utility the following forfeitures:

SB408,23,20 a. If the utility fails to meet one of the standards in a month, $2,000,000.

SB408,23,21 b. If the utility fails to meet 2 of the standards in a month, $3,000,000.

SB408,23,22 c. If the utility fails to meet 3 of the standards in a month, $4,000,000.

SB408,23,23 d. If the utility fails to meet 4 of the standards in a month, $5,000,000.

SB408,23,24 e. If the utility fails to meet 5 of the standards in a month, $6,000,000.

SB408,24,6 2. Notwithstanding subd. 1., the commission may assess a forfeiture that is less than an amount specified in subd. 1. which reflects the severity of the large price-regulated utility's failure to comply with a standard under sub. (2). The commission shall promulgate rules establishing the range of forfeitures that the commission may assess under this subdivision. The lowest forfeiture in such a range may be no less than 50% of the amount specified in subd. 1.

SB408,24,16 3. A large price-regulated telecommunications utility against whom the commission assesses a forfeiture under subd. 1. shall pay the forfeiture to the commission within 10 days after receipt of notice of the assessment or, if the utility petitions for judicial review under ch. 227, within 10 days after receipt of the final decision after exhaustion of judicial review. The commission shall remit all forfeitures paid under this subdivision to the state treasurer for deposit in the school fund. The attorney general shall bring an action in the name of the state to collect any forfeiture assessed by the commission under subd. 1. that has not been paid as provided in this subdivision. The only contestable issue in such an action is whether or not the forfeiture has been paid.

SB408,24,22 (b) Wholesale service. A large price-regulated telecommunications utility that has not structurally separated under s. 196.196 (7) (b) or (c) shall, except as provided in par. (d), compensate a wholesale customer the following amounts if the utility's monthly report under sub. (5) (a) 2. to that wholesale customer demonstrates that the utility has failed to comply with a standard under sub. (3) with respect to that wholesale customer:

SB408,24,23 1. If the utility fails to meet one of the standards in a month:

SB408,24,24 a. If the utility fails to comply with the standard by not more than 5%, $200,000.

SB408,25,2 b. If the utility fails to comply with the standard by more than 5% but not more than 10%, $300,000.

SB408,25,3 c. If the utility fails to comply with the standard by more than 10%, $400,000.

SB408,25,4 2. If the utility fails to meet 2 of the standards in a month:

SB408,25,6 a. If the utility fails to comply with both of the standards by not more than 5%, $300,000.

SB408,25,8 b. If the utility fails to comply with at least one of the standards by more than 5% but not more than 10%, and if subd. 2. c. does not apply, $400,000.

SB408,25,10 c. If the utility fails to comply with at least one of the standards by more than 10%, $500,000.

SB408,25,11 3. If the utility fails to meet 3 of the standards in a month:

SB408,25,13 a. If the utility fails to comply with all 3 of the standards by not more than 5%, $500,000.

SB408,25,15 b. If the utility fails to comply with at least one of the standards by more than 5% but not more than 10%, and if subd. 3. c. does not apply, $600,000.

SB408,25,17 c. If the utility fails to comply with at least one of the standards by more than 10%, $700,000.

SB408,25,18 4. If the utility fails to meet 4 of the standards in a month:

SB408,25,20 a. If the utility fails to comply with all 4 of the standards by not more than 5%, $700,000.

SB408,25,22 b. If the utility fails to comply with at least one of the standards by more than 5% but not more than 10%, and if subd. 4. c. does not apply, $800,000.

SB408,25,24 c. If the utility fails to comply with at least one of the standards by more than 10%, $900,000.

SB408,25,25 5. If the utility fails to meet 5 of the standards in a month:

SB408,26,2 a. If the utility fails to comply with all 5 of the standards by not more than 5%, $800,000.

SB408,26,4 b. If the utility fails to comply with at least one of the standards by more than 5% but not more than 10%, and if subd. 5. c. does not apply, $900,000.

SB408,26,6 c. If the utility fails to comply with at least one of the standards by more than 10%, $1,000,000.

SB408,26,14 (c) Doubling of compensation. The compensation that a large price-regulated utility must pay to a wholesale customer for a month under par. (b) shall be doubled if the utility has failed to comply with 2 or more standards under sub. (3) with respect to that wholesale customer in each of the preceding 3 months or in any 6 of the preceding 12 months. If compensation payable to a wholesale customer for a month is doubled under this paragraph, the doubling shall continue in each succeeding month until the utility complies with at least 4 of the standards under sub. (3) with respect to that wholesale customer for 3 consecutive months.

SB408,26,21 (d) Waiver. No later than 30 days after filing a report under sub. (5) (a), a large price-regulated telecommunications utility may petition the commission to waive a requirement to pay a forfeiture or compensation under par. (a) or (b). The commission may waive the requirement if the large price-regulated telecommunications utility demonstrates to the satisfaction of the commission that the utility's failure to comply with a standard under sub. (2) or (3) was caused by natural disaster, act of God, military action, war, insurrection, or riot.

SB408,26,23 (5) Reports. (a) A large price-regulated telecommunications utility shall do all of the following:

SB408,27,3 1. File monthly reports with the commission that document the extent to which the utility has complied with the standards under sub. (2) during the previous month.

SB408,27,6 2. File monthly reports with each wholesale customer that document the extent to which the utility has complied with the standards under sub. (3) with respect to that wholesale customer during the previous month.

SB408,27,10 (b) Each report filed under par. (a) shall include an affirmation, subject to penalty of false swearing under s. 946.32, by an officer of the large price-regulated telecommunications utility that the information contained in the report is true and complete.

SB408,27,12 (c) The commission shall promulgate rules establishing the format for reports filed under par. (a).

SB408, s. 24 Section 24. 196.1995 of the statutes is created to read:

SB408,27,15 196.1995 Interconnection, collocation, and network elements. (1) Definitions. In this section:

SB408,27,16 (a) "End-user customer" has the meaning given in s. 196.196 (6) (a) 2.

SB408,27,17 (b) "Local exchange service" has the meaning given in s. 196.50 (1) (b) 1.

SB408,27,18 (c) "Network element" has the meaning given in s. 196.196 (7) (a) 1.