AB207,11,2120 d. Service charges related to the provision of video service, including activation,
21installation, repair, and maintenance charges.
AB207,11,2322 e. Administrative charges related to the provision of video service, including
23service order and service termination charges.
AB207,11,2524 2. Notwithstanding subd. 1., "gross receipts" does not include any of the
25following:
AB207,12,2
1a. Discounts, refunds, and other price adjustments that reduce the amount of
2compensation received by a video service provider.
AB207,12,53 b. Uncollectible fees, except that any uncollectible fees that are written off as
4bad debt but subsequently collected shall be included as gross receipts in the period
5collected, less the expenses of collection.
AB207,12,66 c. Late payment charges.
AB207,12,77 d. Maintenance charges.
AB207,12,128 e. Amounts billed to video service subscribers to recover taxes, fees, surcharges
9or assessments of general applicability or otherwise collected by a video service
10provider from video service subscribers for pass through to any federal, state, or local
11government agency, including video service provider fees and regulatory fees paid to
12the FCC under 47 USC 159.
AB207,12,1513 f. Revenue from the sale of capital assets or surplus equipment not used by the
14purchaser to receive video service from the seller of those assets or surplus
15equipment.
AB207,12,2316 g. Charges, other than those described in subd. 1., that are aggregated or
17bundled with amounts described in subd. 1. and billed to video service subscribers,
18including but not limited to any revenues received by a video service provider or its
19affiliates for telecommunications services, information services, or the provision of
20directory or Internet advertising, including yellow pages, white pages, banner
21advertisement, and electronic publishing, if a video service provider can reasonably
22identify such charges on books and records kept in the regular course of business or
23by other reasonable means.
AB207,12,2524 h. Reimbursement by programmers of marketing costs actually incurred by a
25video service provider.
AB207,13,5
1(k) "Household" means a house, apartment, mobile home, group of rooms, or
2single room that is intended for occupancy as separate living quarters. For purposes
3of this paragraph, "separate living quarters" are those in which the occupants live
4and eat separately from any other persons in the building and which have direct
5access from the outside of the building or through a common hall.
AB207,13,96 (L) "Incumbent cable operator" means a person who, immediately before the
7effective date of this paragraph, was providing cable service under a cable franchise,
8expired cable franchise, or cable franchise extension, or under an ordinance or
9resolution adopted or enacted by a municipality.
AB207,13,1110 (m) "Institutional network" means a network that connects governmental,
11educational, and community institutions.
AB207,13,1412 (n) "Interim cable operator" means an incumbent cable operator that elects to
13continue to provide cable service under a cable franchise as specified in sub. (3) (b)
142. a.
AB207,13,1615 (o) "Issued" means, with respect to a video service franchise, issued or
16considered to be issued by the department under sub. (3) (f) 2.
AB207,13,1917 (p) "Large telecommunications video service provider" means a
18telecommunications video service provider that has more than 500,000 basic local
19exchange access lines in this state.
AB207,13,2320 (q) "Low-income household" means any individual or group of individuals
21living together as one economic unit in a household whose aggregate annual income
22is not more than $35,000, as identified by the United States Census Bureau as of
23January 1, 2007.
AB207,13,2424 (r) "Municipality" means a city, village, or town.
AB207,14,2
1(s) "PEG channel" means a channel designated for noncommercial public,
2educational, or governmental use.
AB207,14,43 (r) "Service tier" means a category of video service for which a separate rate is
4charged.
AB207,14,65 (u) "State agency" means any board, commission, committee, department, or
6office in the state government.
AB207,14,97 (v) "Telecommunications video service provider" means a video service provider
8that uses facilities for providing telecommunications service, as defined in s. 196.01
9(9m), also to provide video service.
AB207,14,1210 (w) "Video franchise area" means the area or areas described in an application
11for a video service franchise under sub. (3) (d) 2., as modified, if applicable, in a
12notification made under sub. (3) (j).
AB207,14,1413 (x) "Video programming" means programming provided by, or generally
14considered comparable to programming provided by, a television broadcast station.
AB207,14,1915 (y) "Video service" means any video programming service, cable service, or
16service provided via an open video system that complies with 47 USC 573, that is
17provided through facilities located at least in part in public rights-of-way, without
18regard to delivery technology, including Internet protocol technology or any other
19technology. "Video service" does not include any of the following:
AB207,14,2120 1. Video programming provided by a commercial mobile radio service provider,
21as defined in s. 196.01 (2g).
AB207,14,2422 2. Video programming provided solely as part of and via a service that enables
23users to access content, information, electronic mail, or any other service offered over
24the public Internet.
AB207,14,2525 (z) "Video service franchise" means a franchise issued under sub. (3) (f) 2.
AB207,15,4
1(zb) "Video service network" means wireline facilities, or any component
2thereof, located at least in part in the public right-of-way that deliver video service,
3without regard to delivery technology, including Internet protocol technology or any
4other technology. "Video service network" includes a cable system.
AB207,15,75 (zg) "Video service provider" means a person, including an incumbent cable
6operator, who is issued a video service franchise or an affiliate, successor, or assign
7of such a person.
AB207,15,98 (zm) "Video service provider fee" means the fee paid by a video service provider
9under sub. (7).
AB207,15,13 10(3) Authority to provide video service. (a) In general. Except for an interim
11cable operator, and except as provided in par. (c), no person may provide video service
12in this state unless the department has issued a video service franchise to the person
13and the person has provided the notice required under par. (h).
AB207,15,1614 (b) Incumbent cable operators. 1. A municipality may not renew or extend the
15cable franchise of an incumbent cable operator that expires after the effective date
16of this subdivision .... [revisor inserts date].
AB207,15,1717 2. An incumbent cable operator may do one of the following:
AB207,15,1918 a. Continue to provide cable service as an interim cable operator until the cable
19franchise expires.
AB207,16,220 b. Apply for a video service franchise. If an incumbent cable operator applies
21for a video service franchise, the cable franchise shall terminate and have no effect
22upon issuance of the video service franchise. Upon termination of the cable
23franchise, the municipality that granted the franchise shall, at the request of the
24incumbent cable operator, surrender, return, or take such other action as may be

1necessary to nullify any bond, letter of credit, or similar instrument intended to
2secure the performance of the incumbent cable operator under the cable franchise.
AB207,16,133 3. An incumbent cable operator whose cable franchise expires after the
4effective date of this subdivision .... [revisor inserts date], may not, after expiration
5of the cable franchise, provide video service in this state unless the incumbent cable
6operator applies for a video service franchise under subd. 2. b. and, upon issuance
7of the video service franchise, provides the notice required under par. (h). An
8incumbent cable operator whose cable franchise expired before the effective date of
9this subdivision .... [revisor inserts date], and who was providing cable service
10immediately before the effective date of this act, may continue to provide cable
11service if, no later than the first day of the 2nd month beginning after the effective
12date of this subdivision .... [revisor inserts date], the incumbent cable operator
13applies for a video service franchise under subd. 2. b.
AB207,16,1914 (c) Other providers. If a person, other than an incumbent cable operator, who
15was providing video service immediately before the effective date of this paragraph
16.... [revisor inserts date], applies, no later than the first day of the 2nd month
17beginning after the effective date of this paragraph .... [revisor inserts date], for a
18video franchise, the person may provide video service until the department issues a
19video franchise to the person.
AB207,16,2120 (d) Application. An applicant for a video service franchise shall submit an
21application to the department that consists of all of the following:
AB207,16,2422 1. The location and telephone number of the applicant's principal place of
23business, the names of the principal executive officers of the applicant, and the
24names of any persons authorized to represent the applicant before the department.
AB207,17,2
12. A description of the area or areas of the state in which the applicant intends
2to provide video service.
AB207,17,43 3. The date on which the applicant intends to begin providing video service in
4the video franchise area.
AB207,17,65 4. An affidavit signed by an officer or general partner of the applicant that
6affirms all of the following:
AB207,17,87 a. That the applicant has filed or will timely file with the FCC all forms required
8by the FCC in advance of offering video service.
AB207,17,109 b. That the applicant agrees to comply with this section and all applicable
10federal statutes and regulations.
AB207,17,1211 c. That the applicant is legally, financially, and technically qualified to provide
12video service.
AB207,17,1713 (e) Service upon municipalities. 1. At the time that an applicant submits an
14application under par. (d), or a video service provider submits a notification
15regarding a modification to an application under par. (j), to the department, the
16applicant or video service provider shall serve a copy of the application or notification
17on each municipality in the video franchise area.
AB207,17,2318 2. a. This subdivision applies only to a municipality that, under subd. 1., is
19served a copy of an application or that, under subd. 1., is served a copy of a
20notification relating to an expansion of the area or areas of the state in which a video
21service provider intends to provide video service, if the municipality has not
22previously been served a copy of an application under subd. 1. by that video service
23provider.
AB207,18,524 b. If a municipality specified in subd. 2. a. has granted any cable franchise that
25is in effect immediately before the effective date of this subdivision .... [revisor inserts

1date], the municipality shall, no later than 10 business days after receipt of the copy,
2notify the applicant in writing of the number of PEG channels for which incumbent
3cable operators are required to provide channel capacity in the municipality and the
4percentage of revenues that incumbent cable operators are required to pay the
5municipality as franchise fees.
AB207,18,96 (f) Department duties. 1. No later than 10 business days after the filing of an
7application, the department shall notify the applicant in writing as to whether the
8application is complete and, if the department has determined that the application
9is not complete, the department shall state the reasons for the determination.
AB207,18,1510 2. No later than 10 business days after the filing of an application that the
11department has determined is complete, the department shall issue a video service
12franchise to the applicant and, if the department fails to do so, the department shall
13be considered to have issued a video service franchise to the applicant, unless the
14applicant withdraws the application or agrees with the department to an extension
15of time.
AB207,18,1916 (g) Effect of video service franchise. A video service franchise issued by the
17department authorizes a video service provider to occupy the public rights-of-way
18and to construct, operate, maintain, and repair a video service network to provide
19video service in the video franchise area.
AB207,18,2220 (h) Notice before providing service. No later than 10 days before providing video
21service in a municipality in a video franchise area, a video service provider shall
22provide notice to the department and the municipality.
AB207,19,223 (i) Expiration of video service franchise. A video service franchise issued to a
24video service provider does not expire, unless the video service provider gives 30 days'
25advance notice to the department that the video service provider intends to

1terminate the video service franchise. If a video service provider gives such notice,
2the video service franchise shall expire on the termination date stated in the notice.
AB207,19,103 (j) Modifications. If there is any change in the information included in an
4application filed by a video service provider under this subsection, the video service
5provider shall notify the department and update the information within 10 business
6after the change, except that if the video service provider determines to expand the
7area or areas of the state in which the video service provider intends to provide video
8service, the video service provider shall notify the department as soon as practicable
9after making such a determination but no later than 10 business days before
10providing video service in the expansion area or areas.
AB207,19,18 11(4) Franchising authority. For purposes of 47 USC 521 to 573, the state is the
12exclusive franchising authority for video service providers in this state.
13Notwithstanding s. 66.0425, no municipality may require a video service provider to
14obtain a franchise to provide video service or impose on a video service provider any
15fee or requirement relating to the construction of a video service network or the
16provision of video service, including any requirement to deploy facilities or
17equipment or any requirement regarding rates for video service, except as
18specifically authorized under this section.
AB207,20,2 19(5) PEG channels. (a) Maximum number of PEG channels. 1. If an incumbent
20cable operator is providing channel capacity for PEG channels to a municipality
21under a cable franchise in effect immediately before the effective date of this
22subdivision .... [revisor inserts date], the municipality shall require each interim
23cable operator or video service provider that provides video service in the
24municipality to provide channel capacity for the same number of PEG channels for

1which channel capacity is provided immediately before the effective date of this
2subdivision .... [revisor inserts date].
AB207,20,123 2. a. Except as provided in subd. 2. b. and c., if no incumbent cable operator is
4providing channel capacity for PEG channels to a municipality under a cable
5franchise that is in effect immediately before the effective date of this subd. 2. a. ....
6[revisor inserts date], then, if the municipality has a population of 50,000 or more,
7the municipality may require each interim cable operator and video service provider
8that provides video service in the municipality to provide channel capacity for up to
93 PEG channels, and, if the municipality has a population of less than 50,000, the
10municipality may require each interim cable operator and video service provider that
11provides video service in the municipality to provide channel capacity for no more
12than 2 PEG channels.
AB207,20,1813 b. If an interim cable operator or video service provider distributes video
14programming to more than one municipality through a single headend or video hub
15office and the aggregate population of the municipalities is 50,000 or more, the
16municipalities may not require the interim cable operator or video service provider
17to provide, in the aggregate, channel capacity for more than 3 PEG channels under
18subd. 2. a.
AB207,20,2419 c. If an interim cable operator or video service provider distributes video
20programming to more than one municipality through a single headend or video hub
21office and the aggregate population of the municipalities is less than 50,000, the
22municipalities may not require the interim cable operator or video service provider
23to provide, in the aggregate, channel capacity for more than 2 PEG channels under
24subd. 2. a.
AB207,21,4
13. An interim cable operator or video service provider shall provide any channel
2capacity for PEG channels required under this paragraph on any service tier that is
3viewed by more than 50 percent of the interim cable operator's or video service
4provider's customers.
AB207,21,135 4. If a municipality is not required to provide notice to a video service provider
6under sub. (3) (e) 2., the video service provider's duty to provide any additional
7channel capacity for PEG channels that is required by the municipality under this
8paragraph first applies on the date that the video service provider begins to provide
9service in the municipality, and, if the municipality is required to provide notice
10under sub. (3) (e) 2., the video service provider's duty to provide any such additional
11channel capacity first applies on the date that the video service provider begins to
12provide video service in the municipality or on the 90th day after the video service
13provider receives the municipality's notice, whichever is later.
AB207,21,2314 (b) Exceptions. 1. a. Notwithstanding par. (a), an interim cable operator or
15video service provider may reprogram for any other purpose any channel capacity
16provided for a PEG channel required by a municipality under par. (a) if the PEG
17channel is not substantially utilized by the municipality. If the municipality certifies
18to the interim cable operator or video service provider that reprogrammed channel
19capacity for a PEG channel will be substantially utilized by the municipality, the
20interim cable operator or video service provider shall, no later than 120 days after
21receipt of the certification, restore the channel capacity for the PEG channel.
22Notwithstanding par. (a) 3., an interim cable operator or video service provider may
23provide restored channel capacity for a PEG channel on any service tier.
AB207,22,224 b. For purposes of this subdivision, a PEG channel is substantially utilized by
25a municipality if the municipality provides 12 hours or more of programming on the

1PEG channel each calendar day and at least 80 percent of that programming is
2locally produced and not repeated.
AB207,22,63 2. Notwithstanding par. (a), if a municipality fails to provide the notice
4specified in sub. (3) (e) 2. before the deadline specified in sub. (3) (e) 2., no interim
5cable operator or video service provider is required to provide channel capacity for
6any PEG channel until the 90th day after the municipality provides such notice.
AB207,22,107 (c) Powers and duties of municipalities. 1. Except as otherwise required under
8par. (a), a municipality may not require an interim cable operator or video service
9provider to provide any funds, services, programming, facilities, or equipment
10related to public, educational, or governmental use of channel capacity.
AB207,22,1611 2. The operation of any PEG channel for which a municipality requires an
12interim cable operator or video service provider to provide channel capacity under
13par. (a), and the production of any programming appearing on such a PEG channel,
14shall be the sole responsibility of the municipality and, except as provided in par. (d)
151., the interim cable operator or video service provider shall bear only the
16responsibility to transmit programming appearing on the PEG channel.
AB207,22,1917 3. A municipality that requires an interim cable operator or video service
18provider to provide channel capacity for a PEG channel under par. (a) shall do all of
19the following:
AB207,23,220 a. Ensure that all content and programming that the municipality provides or
21arranges to provide for transmission on the PEG channel is submitted to the interim
22cable operator or video service provider in a manner and form that is capable of being
23accepted and transmitted by the interim cable operator or video service provider over
24its video service network without changing the content or transmission signal and
25that is compatible with the technology or protocol, including Internet protocol

1television, utilized by the interim cable operator or video service provider to deliver
2video service.
AB207,23,63 b. Make the content and programming that the municipality provides or
4arranges to provide for transmission on a PEG channel available in a
5nondiscriminatory manner to all interim cable operators and video service providers
6that provide video service in the municipality.
AB207,23,137 (d) Duties of interim cable providers and video service provider. 1. If a
8municipality requires an interim cable operator or video service provider to provide
9channel capacity for a PEG channel under par. (a), the interim cable operator or video
10service provider shall be required to provide only the first 200 feet of transmission
11line that is necessary to connect the interim cable operator's or video service
12provider's video service network to one distribution point used by the municipality
13to transmit programming for the PEG channel.
AB207,23,2314 2. If the interconnection of the video service networks of interim cable operators
15or video service providers is technically necessary and feasible for the transmission
16of programming for any PEG channel for which channel capacity is required by a
17municipality under par. (a), the interim cable operators and video service providers
18shall negotiate in good faith for interconnection on mutually acceptable rates, terms,
19and conditions, except that an interim cable operator or video service provider who
20requests interconnection is responsible for interconnection costs, including the cost
21of transmitting programming from its origination point to the interconnection point.
22Interconnection may be accomplished by direct cable microwave link, satellite, or
23any other reasonable method.
AB207,24,3 24(6) Institutional networks. Notwithstanding any franchise, ordinance, or
25resolution in effect on the effective date of this subsection .... [revisor inserts date],

1no state agency or municipality may require an interim cable operator or video
2service provider to provide any institutional network or equivalent capacity on its
3video service network.
AB207,24,17 4(7) Video service provider fee. (a) Duty to pay fee. 1. Notwithstanding s.
566.0611 and except as provided in subd. 2., a video service provider shall, on a
6quarterly calendar basis, calculate and pay to each municipality in which the video
7service provider provides video service a video service provider fee equal to the
8percentage of the video service provider's gross receipts that is specified in par. (b).
9A video service provider shall remit the fee to the municipality no later than 45 days
10after the end of each quarter. Except as provided in subd. 2. or par. (b) 1., if the
11municipality is not required to provide notice under sub. (3) (e) 2., the duty to remit
12the fee first applies to the quarter in which the video service provider begins to
13provide service in the municipality, and, if the municipality is required to provide
14notice under sub. (3) (e) 2., the duty to remit the fee first applies to the quarter in
15which the video service provider begins to provide service in the municipality or to
16the quarter that includes the 45th day after the video service provider receives the
17municipality's notice, whichever quarter is later.
AB207,24,2218 2. If a municipality fails to provide the notice specified in sub. (3) (e) 2. before
19the deadline specified in sub. (3) (e) 2., no video service provider is required to pay
20a video service provider fee, and no interim cable operator is required to pay a
21franchise fee, to the municipality until the 45th day after the end of the quarter in
22which the municipality provides the notice specified in sub. (3) (e) 2.
AB207,24,2523 (b) Amount of fee. The percentage applied to a video service provider's gross
24receipts under par. (a) 1. for each municipality shall be 5 percent or one of the
25following percentages, whichever is less:
AB207,25,7
11. If no incumbent cable operator was required to pay a franchise fee equal to
2a percentage of gross revenues to the municipality immediately before the effective
3date of this subdivision .... [revisor inserts date], the municipality may specify a
4percentage of no more than 5 percent. The duty of a video service provider to pay the
5municipality a video service fee equal to such percentage shall first apply to the
6quarter that includes the 45th day after the municipality provides notice of the
7percentage to the video service provider.
AB207,25,108 2. If an incumbent cable operator was required to pay a franchise fee equal to
9a percentage of gross revenues to the municipality immediately before the effective
10date of this subdivision .... [revisor inserts date], that percentage.
AB207,25,1411 3. If more than one incumbent cable operator was required to pay a franchise
12fee equal to a percentage of gross revenues to the municipality immediately before
13the effective date of this subdivision .... [revisor inserts date], the lowest such
14percentage.
AB207,25,1715 (c) Generally accepted accounting principles. All determinations and
16computations made under this subsection shall be made pursuant to generally
17accepted accounting principles.
AB207,25,2218 (d) Record review. A municipality may, upon reasonable written request but
19no more than once in any 3-year period, for the purpose of ensuring proper and
20accurate payment of a video service provider fee, review the business records of a
21video service provider that is required to pay the municipality a video service
22provider fee.
AB207,26,323 (e) Actions to enforce payment. 1. A municipality or a video service provider
24may not bring an action concerning the amount of a video service provider fee
25allegedly due to the municipality unless the parties have first participated in and

1completed good faith settlement discussions. For purposes of any future litigation,
2all negotiations pursuant to this paragraph shall be treated as compromise
3negotiations under s. 904.08.
AB207,26,94 2. An action regarding a dispute over the amount of a video service provider fee
5paid or allegedly due under this subsection shall be commenced within 3 years
6following the end of the calendar quarter to which the disputed amount relates or be
7barred, unless the parties agree in writing to an extension of time. Notwithstanding
8ss. 814.01, 814.02, 814.03, and 814.035, no costs may be allowed in the action to
9either party.
AB207,26,1110 (f) Itemization. A video service provider may identify and collect the amount
11related to a video service provider fee as a separate line item on customer bills.
AB207,26,1612 (g) Invalidity of other fees. If a video service provider pays video service
13provider fees to a municipality as required under this subsection, the municipality
14may not require the video service provider to pay any compensation under s. 66.0425,
15or any permit fee, encroachment fee, degradation fee, or any other fee, for the
16occupation of or work within public rights-of-way.
AB207,26,20 17(8) Discrimination; access to services. (a) Discrimination prohibited. 1. No
18video service provider may deny access to video service to any group of potential
19residential customers in the video service provider's video franchise area because of
20the race or income of the residents in the local area in which the group resides.
AB207,26,2221 2. It is a defense to an alleged violation of subd. 1. based on income if the video
22service provider has met either of the following conditions:
AB207,26,2523 a. No later than 3 years after the date on which the video service provider began
24providing video service under this section, at least 25 percent of households with
25access to the video service provider's video service are low-income households.
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