SB451: Bill Text

SB451,12,23 196.025 (6) (a) In this subsection, "intrastate telecommunications service provider" means any telecommunications provider that provides intrastate telecommunications service or Internet access service.

SB451,13,4 (b) The commission shall investigate competition among intrastate telecommunications service providers during the 5-year period after the effective date of this paragraph .... [revisor inserts date], and submit a report to the appropriate standing committees of the legislature under s. 13.172 (3) that assesses the relationship between the regulatory and competitive status of all intrastate telecommunications providers, including an assessment of all of the following:

SB451,13,6 1. The status of competition among intrastate telecommunications service providers, including all of the following:

SB451,13,8 a. The number of different intrastate telecommunications providers in different product and geographic markets in this state as compared to national data.

SB451,13,11 b. The prices of all telecommunications services offered by the different intrastate telecommunications service providers in this state as compared to national averages.

SB451,13,13 c. The market power of the different intrastate telecommunications providers in this state as compared to national data.

SB451,13,15 2. The differences in the level of regulation applicable to the different intrastate telecommunications service providers in this state.

SB451,13,18 3. A comparison of the retail service quality credit plans offered by the different intrastate telecommunications service providers in this state and a comparison between such plans that are offered in this state and elsewhere in the nation.

SB451,13,24 4. The barriers to effective competition, as defined in rules promulgated by the commission, in markets for telecommunications services offered by intrastate telecommunications providers, including the barriers to entry into different product and geographic markets, and including of whether the barriers are unreasonable and whether any barrier results from anticompetitive behavior of any intrastate telecommunications provider.

SB451,14,3 5. The total number of different types of complaints by residential customers to the commission or the department of agriculture, trade and consumer protection regarding each intrastate telecommunications provider.

SB451,14,7 6. For each intrastate telecommunications provider, of the total number of different types of complaints under subd. 1., the number of different types of complaints that are due to circumstances that are the fault of the intrastate telecommunications provider.

SB451,14,10 7. The availability, price, and quality of unbundled network elements, interconnection, and collocation provided by the different intrastate telecommunications providers.

SB451,14,12 8. The effectiveness of the compliance plans established in the order under s. 196.1995 (5) (a).

SB451,14,14 9. Any other factor that the commission determines is relevant to competition among intrastate telecommunications providers.

SB451,14,21 (c) The report under par. (b) shall include any proposals for legislation recommended by the commission, including any proposals for remedying anti-competitive behavior of intrastate telecommunications providers. If the proposals do not include recommendations for requiring intrastate telecommunications providers to structurally separate wholesale and retail operations into separate, independently operated affiliates, the report shall indicate the commission's reasons for not making such a recommendation.

SB451, s. 13 Section 13. 196.195 (1) of the statutes is renumbered 196.195 (1r).

SB451, s. 14 Section 14. 196.195 (1g) of the statutes is created to read:

SB451,14,25 196.195 (1g) Definition. In this section, "effective competition" has the meaning given in rules promulgated by the commission.

SB451, s. 15 Section 15. 196.196 (1) (c) 1. of the statutes is amended to read:

SB451,16,7 196.196 (1) (c) 1. A price-regulated telecommunications utility may not increase its rates for services under par. (a), except for basic message telecommunications service, for a period of 3 years after electing to become price regulated. Following the initial 3-year period for services under par. (a), except for basic message telecommunications service, and at any time for basic message telecommunications service, a price-regulated telecommunications utility may increase its rates for those services to the extent that the change in the revenue weighted price indices does not exceed 2 percentage points less than the most recent annual change in the gross domestic product price index, as published by the federal government. The commission shall, by rule, create a penalty mechanism for up to a one percentage point increase in the percentage offset for inadequate service provided by or insufficient investment made by a price-regulated telecommunications utility. The commission shall, by rule, create an incentive mechanism for up to a one percentage point decrease in the percentage offset to encourage infrastructure investment by the price-regulated telecommunications utility. For a telecommunications utility with more than 500,000 access lines in use in this state at the time of electing to become price regulated, the percentage offset to the change in the gross domestic product price index shall be 3 percentage points and, the penalty mechanism shall be up to a 10 percentage point increase, and the incentive mechanism shall be up to a 2 percentage points point decrease. No earlier than 6 years after September 1, 1994, and no more frequently than every 3 years thereafter, the commission may, following notice and an opportunity for hearing, by rule increase or decrease the gross domestic product price index percentage offset by a maximum of one percentage point in any 12-month period to reflect any statewide changes in the productivity experience of the telecommunications industry. The commission shall promulgate rules to identify the factors that the commission may consider in determining changes in the productivity experience of the telecommunications industry. If application of the price regulation index formula achieves a negative result, prices shall be reduced so that the cumulative price change for services under par. (a), including prior price reductions in these services, achieves the negative result.

SB451, s. 16 Section 16. 196.196 (1) (em) of the statutes is created to read:

SB451,16,11 196.196 (1) (em) 1. In this paragraph, "small business rates" means rates for standard business access lines and usage by small businesses with no more than 3 access lines.

SB451,17,2 2. Notwithstanding pars. (c), (d), and (e), the commission shall investigate whether to allow price-regulated telecommunications utilities to increase small business rates in geographic areas specified by the commission. The commission shall complete the investigation no later than the first day of the 13th month beginning after the effective date of this subdivision .... [revisor inserts date]. The commission may allow such an increase in a geographic area only if, as a result of the investigation, the commission determines that effective competition, as defined in rules promulgated by the commission, exists in the geographic area. If the commission makes such a determination, a price-regulated telecommunications utility may petition the commission to increase small business rates in the geographic area. If a price-regulated telecommunications utility includes with a petition a statement that, if the petition is granted, the utility agrees to allow customers with whom the utility has contracts for small business rates to terminate the contracts as provided in subd. 3., the commission shall grant the petition, except that the commission may not grant a petition until after the commission's order under s. 196.219 (3m) (b) goes into effect.

SB451,17,12 3. Notwithstanding any provision in a tariff filed under s. 196.194 (1), if the commission grants a petition filed by a price-regulated telecommunications utility under subd. 2., a customer of the utility may, no later than one year after the effective date of the commission's order granting the petition, terminate, without penalty, a contract with the utility for small business rates before the expiration of the contract if the customer terminates the contract for the purpose of entering into a new contract for small business rates with another telecommunications provider. Termination of a contract under this subdivision is effective when the price-regulated telecommunications utility receives oral or written notice from a customer.

SB451,17,21 4. If the commission grants a petition filed by a price-regulated telecommunications utility under subd. 2., the utility shall give notice to its customers that are subject to small business rates that describes the small business rate increase approved by the commission and the right of customers to terminate contracts under subd. 3. The notice shall be published in a newspaper of general circulation in the affected geographic area within a reasonable time period after the commission grants the petition, and shall be included in or on the bill of each customer that is subject to small business rates in the billing first following the commission's granting of the petition.

SB451, s. 17 Section 17. 196.196 (1) (g) 1. (intro.) of the statutes is amended to read:

SB451,18,6 196.196 (1) (g) 1. (intro.) Five years after a telecommunications utility elects to become a price-regulated telecommunications utility or, if subd. 4. applies, within the dates specified in that subdivision, the commission shall hold a hearing, and at any time thereafter, upon complaint or on the commission's own motion, the commission may hold a hearing, to determine whether it is in the public interest to suspend one or more of the provisions of this subsection, except par. (em), as it applies to a price-regulated telecommunications utility or to approve an alternative regulatory method for that utility. In making a determination under this subdivision, the commission shall identify all of the following:

SB451, s. 18 Section 18. 196.196 (3) (a) of the statutes is amended to read:

SB451,18,12 196.196 (3) (a) Except to the extent expressly permitted by this section and ss. 196.19 (1m), 196.194, 196.195, 196.1995, 196.20 (1m), 196.204, 196.209, and 196.219, the commission may not have jurisdiction over the prices or terms and conditions for the offering of any other services, including new telecommunications services, offered by a price-regulated telecommunications utility.

SB451, s. 19 Section 19. 196.196 (6) (title) of the statutes is created to read:

SB451,18,14 196.196 (6) (title) Mandatory credits.

SB451, s. 20 Section 20. 196.196 (6) (a) of the statutes is created to read:

SB451,18,16 196.196 (6) (a) Definitions. In this subsection:

SB451,18,19 1. "Customer" means any person, including a telecommunications provider, that uses the services, products, or facilities provided by a telecommunications utility.

SB451,18,23 2. "End-user customer" means a person that receives local exchange service from a telecommunications utility or another telecommunications provider, and that does not resell the local exchange service or use such service to provide telecommunications service to any other customer.

SB451,19,3 3. "Large price-regulated telecommunications utility" means a price-regulated telecommunications utility that has more than 500,000 access lines in use in this state at the time of electing to become price regulated.

SB451,19,4 4. "Local exchange service" has the meaning given in s. 196.50 (1) (b) 1.

SB451,19,7 5. "Telecommunications utility" means a large price-regulated telecommunications utility or a telecommunications utility specified by the commission in an order under par. (f).

SB451, s. 21 Section 21. 196.196 (6) (b) of the statutes is created to read:

SB451,19,13 196.196 (6) (b) Service disruptions. 1. If the local exchange service of an end-user customer is disrupted by a telecommunications utility and remains disrupted for more than 24 hours after the disruption is reported to the telecommunications utility, the utility shall issue a credit in an amount specified in subd. 2. to the end-user customer unless one of the following applies:

SB451,19,15 a. The disruption is caused by the end-user customer or the end-user customer's telecommunications equipment.

SB451,19,17 b. The disruption is caused by a natural disaster, act of God, military action, war, insurrection, or riot.

SB451,19,19 c. The end-user customer fails to keep an appointment to repair the disruption and the utility is not able to obtain access to repair the disruption.

SB451,19,23 2. If service is disrupted for 24 hours or more, the amount of the credit under subd. 1. shall be $35 for each primary residential line, $5 for each other residential line, $135 for each main billing business line, and $25 for each other business line, for each 24-hour period, or portion of a 24-hour period, in which service is disrupted.

SB451, s. 22 Section 22. 196.196 (6) (c) of the statutes is created to read:

SB451,20,7 196.196 (6) (c) Failure to install local exchange service. 1. Except as provided in subd. 2., if a telecommunications utility fails to install local exchange service or related equipment within 5 business days after an end-user customer places an order for the service or equipment, the telecommunications utility shall issue a credit to the end-user customer in an amount equal to $35 for each residential line and $135 for each business line for each business day, or portion of a business day, beyond the 5th business day that the service or equipment is not installed.

SB451,20,8 2. Subdivision 1. does not apply to any of the following:

SB451,20,10 a. The installation of service in an undeveloped area where there are no telecommunications facilities.

SB451,20,12 b. A failure to install that is caused by a natural disaster, act of God, military action, war, insurrection, or riot.

SB451,20,15 c. A failure to install resulting from the end-user customer voluntarily changing the installation date without providing notice 48 hours before the originally scheduled installation date.

SB451, s. 23 Section 23. 196.196 (6) (d) of the statutes is created to read:

SB451,20,18 196.196 (6) (d) Failure to keep appointments. 1. A telecommunications utility shall do all of the following:

SB451,20,22 a. Except as provided in subd. 2., if the utility fails to keep an appointment to install service or make on-premises or outside repairs for an end-user customer, issue a $35 credit for each residential line and a $135 credit for each business line that is affected by the failure.

SB451,20,24 b. Inform an end-user customer about the utility's obligation to issue a credit under subd. 1. a. at the time an appointment is made.

SB451,21,4 2. Subdivision 1. a. does not apply if the telecommunications utility provides the end-user customer with 24-hour advance notice that the utility is not able to keep the appointment or if a natural disaster, act of God, military action, war, insurrection, or riot prevents the utility from keeping the appointment.

SB451, s. 24 Section 24. 196.196 (6) (e) of the statutes is created to read:

SB451,21,9 196.196 (6) (e) Credit procedure. 1. If a telecommunications utility is required to provide a credit to an end-user customer under this subsection, the telecommunications utility shall issue the credit by adjusting the end-user customer's first bill following the event for which the credit is required.

SB451,21,12 2. Except for an end-user customer report under par. (b) 1., a telecommunications utility may not require an end-user customer to provide any notice as a condition for issuing a credit required under this subsection.

SB451, s. 25 Section 25. 196.196 (6) (f) of the statutes is created to read:

SB451,21,17 196.196 (6) (f) Applicability. If necessary to protect the public interest, the commission may, upon complaint or its own motion, issue an order specifying telecommunications utilities in addition to large price-regulated telecommunications utilities that are subject to the requirements of this subsection.

SB451, s. 26 Section 26. 196.196 (6) (g) of the statutes is created to read:

SB451,21,20 196.196 (6) (g) Other remedies available. The remedies under this subsection are not exclusive.

SB451, s. 27 Section 27. 196.196 (6) (h) of the statutes is created to read:

SB451,21,24 196.196 (6) (h) Sunset. 1. Except as provided in subd. 2., this subsection does not apply after the first day of the 60th month beginning after the effective date of this subdivision .... [revisor inserts date].

SB451,22,3 2. If necessary to protect the public interest, the commission may, after notice and hearing, issue an order providing that this subsection applies after the date specified in subd. 1.

SB451, s. 28 Section 28. 196.1995 of the statutes is created to read:

SB451,22,6 196.1995 Interconnection, collocation, and network elements. (1) Definitions. In this section:

SB451,22,7 (a) "End-user customer" has the meaning given in s. 196.196 (6) (a) 2.

SB451,22,10 (b) "Large price-regulated telecommunications utility" means a price-regulated telecommunications utility that has more than 500,000 access lines in use in this state at the time of electing to become price regulated.

SB451,22,11 (c) "Local exchange service" has the meaning given in s. 196.50 (1) (b) 1.

SB451,22,17 (d) "Network element" means a facility or equipment used to provide telecommunications service. "Network element" includes features, functions, and capabilities that are provided by means of such a facility or equipment, including subscriber numbers, databases, signaling systems, and information sufficient for bills or collections or that are used in transmitting, routing, or otherwise providing telecommunications service.

SB451,22,20 (e) "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.

SB451,22,24 (2) Generally. (a) A large price-regulated telecommunications utility shall provide interconnection, collocation, and network elements to telecommunications providers in a manner that promotes the maximum development of competitive telecommunications service offerings in this state.

SB451,23,6 (b) A large price-regulated telecommunications utility shall provide interconnection, collocation, and network elements in a manner specified by a telecommunications provider if that manner is technically feasible. A manner is presumed to be technically feasible if the large price-regulated telecommunications utility or any of its affiliates offer or provide interconnection, collocation, and network elements in that manner in any jurisdiction.

SB451,23,19 (3) Collocation. (a) A large price-regulated telecommunications utility shall provide physical or virtual collocation of any type of equipment for interconnection with, or access to the network elements of, the utility or any collocated telecommunications provider at the utility's premises, at rates and on terms and conditions that are just, reasonable, and nondiscriminatory. In this paragraph, "equipment" includes optical transmission equipment, multiplexers, remote switching modules, and cross-connects between the facilities or equipment of other collocated telecommunications providers. In this paragraph, "equipment" also includes microwave transmission facilities on the exterior or interior of any premises owned or controlled by a large price-regulated telecommunications utility, unless the large price-regulated telecommunications utility demonstrates to the satisfaction of the commission that physical or virtual collocation of such facilities is not feasible due to technical issues or space limitations.

SB451,23,22 (b) Upon request, a large price-regulated telecommunications utility shall provide for each of the following in a manner that is consistent with safety and network reliability standards:

SB451,23,25 1. Cross-connects between the facilities or equipment of collocated telecommunications providers that are the most reasonably direct and efficient, as determined by the collocated telecommunications provider.

SB451,24,3 2. Cross-connects between the facilities or equipment of a collocated telecommunications provider and the network elements platform or transport facilities of a noncollocated telecommunications provider.

SB451,24,12 (4) Network elements. (a) Upon the request of a telecommunications provider, a large price-regulated telecommunications utility shall provide network elements on a bundled or unbundled basis, as requested by the telecommunications provider, at any point that the telecommunications provider determines is technically feasible, and in a manner that allows the telecommunications provider to combine the network elements to provide new or existing telecommunications service. A large price-regulated telecommunications utility must provide network elements under this paragraph at rates, and on terms and conditions, that are just, reasonable, and nondiscriminatory.

SB451,24,17 (b) A large price-regulated telecommunications utility may not require a wholesale customer to purchase network elements on an unbundled basis if the utility ordinarily combines the elements to provide service to the utility's own end-user customers, except at the direction of a telecommunications provider that requests unbundled network elements.

SB451,24,22 (c) At the direction of a telecommunications provider that requests network elements, a large price-regulated telecommunications utility shall provide network elements on a bundled or unbundled basis, and shall combine any sequence of network elements requested by the telecommunications provider that the utility ordinarily combines for itself.

SB451,25,10 (d) If a telecommunications provider uses the network elements platform of a large price-regulated telecommunications utility that consists solely of combined network elements and the use is for the purpose of providing telecommunications service to an end-user customer, the large price-regulated telecommunications utility may not require that the telecommunications provider purchase other network elements or retail services of the utility. A telecommunications provider may order the network elements platform on an as-is basis for an end-user customer that has received local exchange service from the large price-regulated telecommunications utility and the telecommunications provider may direct the utility not to change any of the features previously selected by the end-user customer. A large price-regulated telecommunications utility that provides a network elements platform to a telecommunications provider shall provide the platform without any disruption of services to end-user customers.

SB451,25,15 (5) Compliance plan. (a) No later than the first day of the 9th month beginning after the effective date of this paragraph .... [revisor inserts date], the commission shall, after notice and, if requested, a hearing, issue an order establishing a compliance plan for each large price-regulated telecommunications utility that includes each of the following:

SB451,25,20 1. Standards for the utility to provide nondiscriminatory access to the utility's services and network elements, including the utility's operational support system, to the utility's wholesale customers. The access must be at least equal in quality to the access provided by the utility to itself or to any subsidiary, affiliate, or other person to which the utility provides interconnection.

SB451,25,22 2. Procedures for measuring the large price-regulated telecommunications utility's compliance with the standards under subd. 1.

SB451,25,24 3. Requirements for the utility to make specified monetary payments to a wholesale customer if the utility fails to comply with the standards under subd. 1.

SB451,26,2 (b) The requirements of this subsection apply in addition to any requirements under an interconnection agreement.

SB451, s. 29 Section 29. 196.204 (1) of the statutes is renumbered 196.204 (1g) and amended to read:

SB451,26,16 196.204 (1g) Except for retained earnings and except as provided in sub. (1r), a telecommunications utility may not subsidize, directly or indirectly, any activity, including any activity of an affiliate, which is not subject to this chapter or is subject to this chapter under s. 196.194, 196.195, 196.202, or 196.203. No telecommunications utility may allocate any costs or expenses in a manner which that would subsidize any activity which that is not subject to this chapter or is subject to this chapter under s. 196.194, 196.195, 196.202, or 196.203. Except as provided in subs. (2) and (4) the commission may not allocate any revenue or expense so that a portion of a telecommunications utility's business which that is fully regulated under this chapter is subsidized by any activity which that is not regulated under this chapter or is partially deregulated under s. 196.194, 196.195, 196.202, or 196.203.