SB451,25,2221 2. Procedures for measuring the large price-regulated telecommunications
22utility's compliance with the standards under subd. 1.
SB451,25,2423 3. Requirements for the utility to make specified monetary payments to a
24wholesale customer if the utility fails to comply with the standards under subd. 1.
SB451,26,2
1(b) The requirements of this subsection apply in addition to any requirements
2under an interconnection agreement.
SB451, s. 29 3Section 29. 196.204 (1) of the statutes is renumbered 196.204 (1g) and
4amended to read:
SB451,26,165 196.204 (1g) Except for retained earnings and except as provided in sub. (1r),
6a telecommunications utility may not subsidize, directly or indirectly, any activity,
7including any activity of an affiliate, which is not subject to this chapter or is subject
8to this chapter under s. 196.194, 196.195, 196.202, or 196.203. No
9telecommunications utility may allocate any costs or expenses in a manner which
10that would subsidize any activity which that is not subject to this chapter or is subject
11to this chapter under s. 196.194, 196.195, 196.202, or 196.203. Except as provided
12in subs. (2) and (4) the commission may not allocate any revenue or expense so that
13a portion of a telecommunications utility's business which that is fully regulated
14under this chapter is subsidized by any activity which that is not regulated under
15this chapter or is partially deregulated under s. 196.194, 196.195, 196.202, or
16196.203.
SB451, s. 30 17Section 30. 196.204 (1r) of the statutes is created to read:
SB451,26,1818 196.204 (1r) (a) In this subsection:
SB451,26,1919 1. "Affiliated interest" has the meaning given in s. 196.52 (1).
SB451,26,2220 2. "Holding company" means a person that, in any chain of successive
21ownership, directly or indirectly as a beneficial owner, owns, controls, or holds 50%
22or more of the outstanding voting securities of a telecommunications utility.
SB451,26,2523 3. "Rural carrier petition" means a petition filed with commission under 47
24USC 251
(f) (2) for suspension or modification of the requirements of 47 USC 251 (b)
25or (c).
SB451,27,3
14. "Rural telephone company exemption" means the exemption from the
2requirements of 47 USC 251 (c) that applies to a rural telephone company under 47
3USC 251
(f) (1).
SB451,27,104 5. "Small telecommunications utility" means a telecommunications utility that
5has less than 50,000 access lines in use in this state. For purposes of this subdivision,
6if a telecommunications utility is owned, controlled, or held by a holding company,
7the number of access lines in use in this state by the telecommunications utility
8shall include the number of access lines in use in this state by all other
9telecommunications utilities, other than commercial mobile radio service
10providers, that are owned, controlled, or held by the holding company.
SB451,27,1111 (b) 1. Except as provided in subd. 2.:
SB451,27,1712 a. A small telecommunications utility may guarantee a loan for an affiliated
13interest if the loan is made before the the first day of the 60th month beginning after
14the effective date of this subdivision 1. a. .... [revisor inserts date], and the purpose
15of the loan is to partially or completely fund the cost of equipment that the affiliated
16interest will use to provide telecommunications services, cable television services, or
17both.
SB451,27,2118 b. A small telecommunications utility may allow an affiliated interest free use
19of any of the utility's intangible assets, including its name, goodwill, patents, and
20trademarks, if the affiliated interest uses the intangible asset to provide
21telecommunications services, cable television services, or both.
SB451,27,2522 2. A small telecommunications utility may not guarantee a loan under subd.
231. a. or allow use of an intangible asset under subd. 1. b., unless the small
24telecommunications utility waives the right to withhold consent under s. 196.50 (1)
25(b) 2. b. in any proceeding under s. 196.50 (1) (b).
SB451,28,6
1(c) 1. During the life of a loan guaranteed by a small telecommunications utility
2under par. (b) 1. a., if the small telecommunications utility files a rural carrier
3petition or the commission determines under 47 USC 251 (f) (1) (B) not to terminate
4the small telecommunication utility's rural telephone company exemption, the
5affiliated interest shall annually pay to the small telecommunications utility an
6amount equal to one-quarter of one percent of the outstanding balance of the loan.
SB451,28,137 2. After a small telecommunications utility allows use of an intangible asset
8under par. (b) 1. b., if the small telecommunications utility files a rural carrier
9petition or the commission determines under 47 USC 251 (f) (1) (B) not to terminate
10the small telecommunication utility's rural telephone company exemption, the
11affiliated interest shall annually pay the small telecommunications utility an
12amount equal to one-quarter of one percent of the affiliated interest's annual gross
13sales.
SB451,28,1714 3. The duty to make payments under subd. 1. or 2. begins on the date that the
15small telecommunications utility files the rural carrier petition or on the date that
16the commission determines not to terminate the rural telephone company
17exemption.
SB451, s. 31 18Section 31. 196.204 (3) of the statutes is renumbered 196.204 (3) (a).
SB451, s. 32 19Section 32. 196.204 (3) (b) of the statutes is created to read:
SB451,28,2420 196.204 (3) (b) The commission shall promulgate rules that require the
21minimum accounting and reporting requirements under par. (a) that apply to
22transactions between small telecommunications utilities, as defined in sub. (1r) (a)
235., and affiliated interests, as defined in s. 196.52 (1), to conform with the
24requirements under 47 CFR 32.27.
SB451, s. 33 25Section 33. 196.219 (1) (c) of the statutes is created to read:
SB451,29,4
1196.219 (1) (c) "Wholesale services" include preordering, ordering and
2provisioning, maintenance and repair, network performance, unbundled elements,
3operator services and directory assistance, system performance, service center
4availability, billing, and any other service that the commission specifies by order.
SB451, s. 34 5Section 34. 196.219 (3) (p) of the statutes is created to read:
SB451,29,96 196.219 (3) (p) Fail to provide wholesale services to another
7telecommunications provider on the same terms and conditions that the
8telecommunications utility or telecommunications provider provides to itself or to
9any of its affiliates.
SB451, s. 35 10Section 35. 196.219 (3m) of the statutes is created to read:
SB451,29,1111 196.219 (3m) Wholesale service standards. (a) In this subsection:
SB451,29,1312 1. "Repeat trouble report" means a trouble report by a wholesale customer who
13has previously made a trouble report regarding the same wholesale service.
SB451,29,1614 2. "Trouble report" means a report to a telecommunications provider by a
15wholesale customer about a problem regarding a wholesale service provided by the
16telecommunications provider.
SB451,29,2017 (b) No later than the first day of the 4th month beginning after the effective date
18of this paragraph .... [revisor inserts date], the commission shall, by order, establish
19nondiscriminatory standards that, except as provided in par. (d), require a
20telecommunications provider to do all of the following:
SB451,29,2121 1. Provision wholesale services and related facilities in a timely manner.
SB451,29,2222 2. Repair wholesale service outages in a timely manner.
SB451,29,2423 3. Minimize the frequency of trouble reports, including trouble reports within
2430 days after initiating a wholesale service.
SB451,29,2525 4. Minimize the frequency of repeat trouble reports.
SB451,30,7
1(c) The order under par. (b) may require a telecommunications provider that
2fails to comply with the order to make payments to another telecommunications
3provider that is affected by the failure to comply or to the commission in amounts and
4according to schedules that are specified in the order. The commission may use the
5payments for any purpose determined by the commission relating to maintaining or
6improving telecommunications service quality, including compensating persons who
7are affected by the failure to comply with the order.
SB451,30,158 (d) The commission may, upon its own motion or a petition from an interested
9person, issue an order exempting a telecommunications provider from the order or
10any requirement of the order issued under par. (b), or imposing a requirement that
11is less stringent than a requirement of the order issued under par. (b), if the
12commission finds, after notice and hearing, that an order under this paragraph is in
13the public interest and the telecommunications provider that is the subject of the
14order has not violated the order issued under par. (b) or any other requirement of this
15section or any of the following:
SB451,30,1716 1. A provision of the federal Telecommunications Act of 1996 relating to
17wholesale service.
SB451,30,1918 2. A regulation or order issued under the federal Telecommunications Act of
191996 relating to wholesale service.
SB451,30,2020 3. An interconnection agreement approved by the commission.
SB451,30,2221 (e) After the commission issues the order under par. (b), the commission may
22promulgate rules that implement the requirements of this subsection.
SB451, s. 36 23Section 36. 196.37 (2) of the statutes is amended to read:
SB451,31,1224 196.37 (2) If the commission finds that any measurement, regulation, practice,
25act or service is unjust, unreasonable, insufficient, preferential, unjustly

1discriminatory or otherwise unreasonable or unlawful, or that any service is
2inadequate, or that any service which reasonably can be demanded cannot be
3obtained, the commission shall determine and make any just and reasonable order
4relating to a measurement, regulation, practice, act or service to be furnished,
5imposed, observed and followed in the future. An order under this subsection against
6a telecommunications provider may require the telecommunications provider to
7make payments in amounts specified in the order to persons affected by the
8measurement, regulation, practice, act, or service or to the commission. The
9commission may use any payment received under this subsection for any purpose
10determined by the commission relating to maintaining or improving
11telecommunications service quality, including compensating persons who are
12affected by the measurement, regulation, practice, act, or service.
SB451, s. 37 13Section 37. 227.01 (13) (cm) of the statutes is created to read:
SB451,31,1514 227.01 (13) (cm) Is an order under s. 196.196 (6) (f) or (h) 2., 196.1995 (5) (a),
15or 196.219 (1) (c) or (3m) (b).
SB451, s. 38 16Section 38. Nonstatutory provisions.
SB451,31,1717 (1) Rules defining "effective competition."
SB451,32,218 (a) Emergency rules. The public service commission shall use the procedure
19under section 227.24 of the statutes to promulgate the rules required under sections
20196.025 (6) (b) 4., 196.195 (1g), and 196.196 (1) (em) 3. of the statutes, as affected by
21this act. Notwithstanding section 227.24 (1) (c) and (2) of the statutes, the emergency
22rules shall remain in effect until the date on which the permanent rules take effect.
23Notwithstanding section 227.24 (1) (a) and (3) of the statutes, the public service
24commission is not required to provide evidence that promulgating an emergency rule
25under this paragraph is necessary to preserve the public peace, health, safety, or

1welfare and is not required to provide a finding of emergency for a rule promulgated
2under this paragraph.
SB451,32,73 (b) Proposed permanent rules. The public service commission shall submit in
4proposed form the rules required under sections 196.025 (6) (b) 4., 196.195 (1g), and
5196.196 (1) (em) 3. of the statutes, as affected by this act, to the legislative council
6staff under section 227.15 (1) of the statutes no later than the first day of the 7th
7month beginning after the effective date of this paragraph.
SB451,32,128 (2) Proposed accounting rules for small telecommunications utilities. The
9public service commission shall submit in proposed form the rules required under
10sections 196.204 (3) (b) of the statutes, as created by this act, to the legislative council
11staff under section 227.15 (1) of the statutes no later than the first day of the 4th
12month beginning after the effective date of this subsection.
SB451, s. 39 13Section 39 . Initial applicability.
SB451,32,1614 (1) The treatment of section 100.207 (3) (a) and (d), (3m), (5), (6) (b) 1., (c), (em)
151., and (g), and (7) of the statutes first applies to changes in telecommunications
16services made on the effective date of this subsection.
SB451,32,1817 (2) The treatment of section 196.196 (6) (b) of the statutes first applies to
18reports made on the effective date of this subsection.
SB451,32,2019 (3) The treatment of section 196.196 (6) (c) of the statutes first applies to orders
20made on the effective date of this subsection.
SB451,32,2221 (4) The treatment of section 196.37 (2) of the statutes first applies to orders
22issued on the effective date of this subsection.
SB451, s. 40 23Section 40. Effective dates. This act takes effect on the day after publication,
24except as follows:
SB451,33,3
1(1) The treatment of section 100.207 (3) (a) and (d), (3m), (5), (6) (b) 1., (c), (em)
21., and (g), and (7) of the statutes and Section 39 (1 ) of this act take effect on the first
3day of the 10th month beginning after publication.
SB451,33,44 (End)
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