AB696-engrossed,22,17 17196.204 (title) Local government telecommunications utilities.
AB696-engrossed, s. 48 18Section 48. 196.204 (1) of the statutes is repealed.
AB696-engrossed, s. 49 19Section 49. 196.204 (2) of the statutes is repealed.
AB696-engrossed, s. 50 20Section 50. 196.204 (3) of the statutes is repealed.
AB696-engrossed, s. 51 21Section 51. 196.204 (4) of the statutes is repealed.
AB696-engrossed, s. 52 22Section 52. 196.204 (5) (ag) of the statutes is renumbered 196.204 (1m) and
23196.204 (1m) (intro.), as renumbered, is amended to read:
AB696-engrossed,22,2424 196.204 (1m) (intro.) In this subsection section:
AB696-engrossed, s. 53
1Section 53. 196.204 (5) (ar) of the statutes is renumbered 196.204 (2m) and
2196.204 (2m) (a), (b) (intro.) and (c) (intro.), as renumbered, are amended to read:
AB696-engrossed,23,93 196.204 (2m) (a) In addition to the other requirements of this section, each
4Each telecommunications service, relevant group of services and basic network
5function offered or used by a local government telecommunications utility shall be
6priced to exceed its total service long-run incremental cost. The commission may
7waive the applicability of this subdivision to a nongovernmental
8telecommunications utility's basic local exchange service if the commission
9determines that a waiver is consistent with the factors under s. 196.03 (6).
AB696-engrossed,23,1810 (b) (intro.) For purposes of subd. 1. par. (a), the total service long-run
11incremental cost of a local government telecommunications utility shall take into
12account, by imputation or allocation, equivalent charges for all taxes, pole rentals,
13rights-of-way, licenses, and similar costs that are incurred by nongovernmental
14telecommunications utilities. This subdivision paragraph does not apply to a local
15government telecommunications utility that is subject to the exemption under s.
1666.0422 (3n). This subdivision paragraph also does not apply to a
17telecommunications service, relevant group of services, or basic network function if
18all of the following conditions apply:
AB696-engrossed,23,2219 (c) (intro.) Subdivision 2. Paragraph (b) does not apply to a telecommunications
20service, relevant group of services, or basic network function, that is used to provide
21broadband service and that is offered by a municipal telecommunications utility, if
22all of the following apply:
AB696-engrossed, s. 54 23Section 54. 196.204 (5) (b) of the statutes is repealed.
AB696-engrossed, s. 55 24Section 55. 196.204 (6) of the statutes is repealed.
AB696-engrossed, s. 55m 25Section 55m. 196.205 of the statutes is repealed.
AB696-engrossed, s. 58
1Section 58. 196.206 of the statutes is created to read:
AB696-engrossed,24,6 2196.206 Interconnected voice over Internet protocol service. (1)
3Exemption. Interconnected voice over Internet protocol service is not subject to ch.
4201 or this chapter, except as provided in this section, and except as provided in ss.
5196.016, 196.025 (6), 196.218 (3), and 196.859, and except as required for the
6commission to enforce ss. 196.016, 196.025 (6), 196.218 (3), and 196.859.
AB696-engrossed,24,15 7(2) Universal service fund. A communications provider, as defined in s.
8196.025 (6) (a) 1., that provides interconnected voice over Internet protocol service
9in this state shall make contributions to the universal service fund based on its
10revenues from providing such service. The revenues shall be calculated using direct
11assignment, a provider-specific traffic study, the inverse of the interstate
12jurisdictional allocation established by the federal communications commission for
13the purpose of federal universal service assessments, or any other reasonable
14assignment. Direct assignment or traffic studies shall be based on the primary
15physical service address identified by the customer.
AB696-engrossed,24,19 16(3) Intrastate access rates. Unless otherwise provided under federal law,
17interconnected voice over Internet protocol services shall be subject to intrastate
18access charges to the same extent that telecommunications services are subject to
19such charges.
AB696-engrossed, s. 60 20Section 60. 196.213 of the statutes is repealed.
AB696-engrossed, s. 61 21Section 61. 196.215 of the statutes is repealed.
AB696-engrossed, s. 62 22Section 62. 196.218 (1) (a) of the statutes is created to read:
AB696-engrossed,24,2523 196.218 (1) (a) "Essential telecommunications services" means services or
24functionalities determined by the federal communications commission to be eligible
25for support by federal universal service support mechanisms.
AB696-engrossed, s. 64
1Section 64. 196.218 (3) (a) 3m. of the statutes is amended to read:
AB696-engrossed,25,72 196.218 (3) (a) 3m. Contributions under this paragraph may be based only on
3the gross operating revenues from the provision of broadcast services identified by
4the commission under subd. 2. and on intrastate telecommunications services in this
5state of the telecommunications providers subject to the contribution. Contributions
6based on revenues from interconnected voice over Internet protocol service shall be
7calculated as provided under s. 196.206 (2).
AB696-engrossed, s. 65 8Section 65. 196.218 (3) (f) of the statutes is amended to read:
AB696-engrossed,25,179 196.218 (3) (f) Notwithstanding ss. 196.196 (1) and (5) (d) 2., 196.20 (2m), (5)
10and (6), 196.213 and 196.215, a
A telecommunications utility that provides local
11exchange service may make adjustments to local exchange service rates for the
12purpose of recovering its contributions to the universal service fund required under
13this subsection. A telecommunications utility that adjusts local exchange service
14rates for the purpose of recovering such contributions shall identify on customer bills
15a single amount that is the total amount of the adjustment. The public service
16commission shall provide telecommunications utilities the information necessary to
17identify such amounts on customer bills.
AB696-engrossed, s. 66 18Section 66. 196.218 (4) of the statutes is repealed and recreated to read:
AB696-engrossed,26,219 196.218 (4) Essential telecommunications services. Each
20telecommunications provider that provides basic local exchange service or that is
21designated as an eligible telecommunications carrier pursuant to 47 USC 214 (e) (2)
22shall make available to its customers all essential telecommunications services. A
23telecommunications provider may satisfy this subsection by providing essential
24telecommunications services itself or through an affiliate and in either case may

1provide essential telecommunications services through the use of any available
2technology or mode.
AB696-engrossed, s. 68 3Section 68. 196.218 (5r) (title) of the statutes is amended to read:
AB696-engrossed,26,44 196.218 (5r) (title) Annual report reports.
AB696-engrossed, s. 69 5Section 69. 196.218 (5r) (a) 4. of the statutes is amended to read:
AB696-engrossed,26,116 196.218 (5r) (a) 4. An assessment of how successful investments identified in
7s. 196.196 (5) (f),
assistance provided by the universal service fund, and price
8regulation
and other alternative incentive regulations of telecommunications
9utilities designed to promote competition have been in advancing the public interest
10goals identified under s. 196.03 (6), and recommendations for further advancing
11those goals.
AB696-engrossed, s. 71 12Section 71. 196.219 (1) (b) of the statutes is amended to read:
AB696-engrossed,26,1513 196.219 (1) (b) "Local exchange service" has the meaning given in s. 196.50 (1)
14(b) 1.
includes access service, basic local exchange service, and business access line
15and usage service within a local calling area.
AB696-engrossed, s. 71e 16Section 71e. 196.219 (2) (a) of the statutes is amended to read:
AB696-engrossed,26,2217 196.219 (2) (a) Notwithstanding any exemptions identified in this chapter
18except s. ss. 196.202, 196.203, 196.206, and 196.50, a telecommunications utility or
19provider shall provide protection to its consumers under this section unless
20exempted in whole or in part by rule or order of the commission under this section.
21The commission shall promulgate rules that identify the conditions under which
22provisions of this section may be suspended.
AB696-engrossed, s. 71g 23Section 71g. 196.219 (2m) of the statutes is repealed.
AB696-engrossed, s. 71m 24Section 71m. 196.219 (2r) of the statutes is created to read:
AB696-engrossed,27,4
1196.219 (2r) Switched access service rates. Any reduction in switched access
2service rates ordered by the commission prior to the effective date of this subsection
3.... [LRB inserts date], including any reduction ordered pursuant to s. 196.195, shall
4remain effective unless modified by the commission in a subsequent order.
AB696-engrossed, s. 71s 5Section 71s. 196.219 (3) (h) of the statutes is repealed.
AB696-engrossed, s. 72 6Section 72. 196.26 (1) (a) of the statutes is amended to read:
AB696-engrossed,27,107 196.26 (1) (a) A complaint filed with the commission that any rate, toll, charge,
8or schedule, joint rate, regulation, measurement, act, or practice relating to the
9provision of heat, light, water, or power, or telecommunications service is
10unreasonable, inadequate, unjustly discriminatory, or cannot be obtained.
AB696-engrossed, s. 73 11Section 73. 196.26 (4) of the statutes is repealed.
AB696-engrossed, s. 74m 12Section 74m. 196.28 (4) of the statutes is amended to read:
AB696-engrossed,27,1613 196.28 (4) This section does not apply to rates, tolls or charges of a
14telecommunications cooperative, an unincorporated telecommunications
15cooperative association, or a small telecommunications utility except as provided in
16s. 196.205 or 196.215 (2)
.
AB696-engrossed, s. 75 17Section 75. 196.31 (1m) of the statutes is amended to read:
AB696-engrossed,27,2018 196.31 (1m) The commission shall compensate any consumer group or
19consumer representative for all reasonable costs of participating in a hearing under
20s. 196.196 (1) (g) or 196.198.
AB696-engrossed, s. 76 21Section 76. 196.37 (3) of the statutes is amended to read:
AB696-engrossed,28,222 196.37 (3) Any public utility to which an order under this section applies shall
23make such changes in schedules on file under s. 196.19 to make the schedules
24conform to the order. The public utility may not make any subsequent change in

1rates, tolls or charges without the approval of the commission , except as provided in
2s. 196.205 or 196.215 (2)
.
AB696-engrossed, s. 77m 3Section 77m. 196.37 (4) of the statutes is amended to read:
AB696-engrossed,28,74 196.37 (4) This section does not apply to rates, tolls or charges of a
5telecommunications cooperative, an unincorporated telecommunications
6cooperative association, or a small telecommunications utility except as provided in
7s. 196.205 or 196.215 (2)
.
AB696-engrossed, s. 78 8Section 78. 196.49 (1) (ag) of the statutes is repealed.
AB696-engrossed, s. 79 9Section 79. 196.49 (3) (b) (intro.) of the statutes is amended to read:
AB696-engrossed,28,1410 196.49 (3) (b) (intro.) Except as provided in par. (d), the The commission may
11require by rule or special order under par. (a) that no project may proceed until the
12commission has certified that public convenience and necessity require the project.
13The commission may refuse to certify a project if it appears that the completion of
14the project will do any of the following:
AB696-engrossed, s. 80 15Section 80. 196.49 (3) (d) of the statutes is repealed.
AB696-engrossed, s. 80m 16Section 80m. 196.50 (title) of the statutes is amended to read:
AB696-engrossed,28,18 17196.50 (title) Competing public utilities; indeterminate permits,
18telecommunications
; telecommunications utility certification.
AB696-engrossed, s. 81 19Section 81. 196.50 (1) (b) 1. and 2. of the statutes are repealed.
AB696-engrossed, s. 82 20Section 82. 196.50 (1) (b) 3. of the statutes is renumbered 196.50 (1) (b).
AB696-engrossed, s. 83 21Section 83. 196.50 (2) (a) of the statutes is amended to read:
AB696-engrossed,28,2422 196.50 (2) (a) Alternative telecommunications utilities shall be certified under
23s. 196.203. All Except as provided in par. (j) 1. a., all other telecommunications
24utilities shall be certified under this subsection.
AB696-engrossed, s. 83m 25Section 83m. 196.50 (2) (b) of the statutes is amended to read:
AB696-engrossed,29,10
1196.50 (2) (b) A certificate, franchise, license or permit, indeterminate or
2otherwise, in effect on September 1, 1994, for a telecommunications utility shall
3remain in effect and shall have the effect of a certificate of authority. A
4telecommunications utility is not required to apply for a new certificate of authority
5to continue offering or providing service to the extent of the prior authorization. Each
6telecommunications utility, including telecommunications cooperatives and
7unincorporated telecommunications cooperative associations, shall have on file with
8the commission under s. 196.19 a tariff that sets forth the rates, terms and conditions
9for all services provided and
a map that defines the geographical limits of the service
10territory that the telecommunications utility is obliged to serve.
AB696-engrossed, s. 84 11Section 84. 196.50 (2) (f) of the statutes is amended to read:
AB696-engrossed,29,1912 196.50 (2) (f) The commission shall issue a certificate of authority or an
13amended certificate of authority if it finds, after notice and opportunity for hearing,
14that the applicant possesses sufficient technical, financial and managerial resources
15to provide telecommunications service to any person within the identified geographic
16area. In making this determination, the commission shall consider the factors
17identified in s. 196.03 (6). The commission may order the applicant to satisfy any
18conditions that the commission considers to be necessary to protect the public
19interest, including structural safeguards.
AB696-engrossed, s. 85 20Section 85. 196.50 (2) (g) 3. of the statutes is repealed.
AB696-engrossed, s. 86 21Section 86. 196.50 (2) (h) of the statutes is repealed.
AB696-engrossed, s. 87 22Section 87. 196.50 (2) (i) of the statutes is created to read:
AB696-engrossed,30,1523 196.50 (2) (i) A telecommunications utility certified under this subsection is
24exempt from all provisions of ch. 201 and is exempt from ss. 196.02 (2); 196.03, except
25with respect to wholesale telecommunications services; 196.05; 196.06; 196.07;

1196.09; 196.10; 196.12; 196.13; 196.19; 196.20; 196.21; 196.22; 196.28, except with
2respect to wholesale telecommunications services; 196.37, except with respect to
3wholesale telecommunications services; 196.49; 196.52; 196.58; 196.60; 196.78; and
4196.79; except that with respect only to its switched access services, a
5telecommunications utility certified under this subsection with 50,000 or less access
6lines in this state is not exempt from s. 196.03; and except that, with respect only to
7its switched access services, a telecommunications utility certified under this
8subsection with more than 50,000 and less than 150,000 access lines in this state is
9not exempt from ss. 196.03 and 196.37. The intrastate access service rates of a
10telecommunications utility with 150,000 or more access lines in this state may not
11exceed the telecommunications utility's interstate access service rates for similar
12access services, except that such a telecommunications utility shall not assess an
13intrastate carrier common line charge or a substitute charge. Except to enforce this
14paragraph, the commission may not review or set the access rates for a
15telecommunications utility with 150,000 or more access lines.
AB696-engrossed, s. 88 16Section 88. 196.50 (2) (j) of the statutes is created to read:
AB696-engrossed,30,1817 196.50 (2) (j) 1. A telecommunications utility certified under this subsection
18may do any of the following:
AB696-engrossed,31,219 a. Provide notice to the commission to terminate the certification under this
20subsection and certify the telecommunications utility as an alternative
21telecommunications utility under s. 196.203. No later than 30 days after receiving
22notice under this subdivision, the commission shall issue an order granting a
23certification under s. 196.203. Except as provided in subds. 4. and 5., the granting
24of such certification shall operate to terminate the certification under this subsection
25and all regulatory requirements related to the certification under this subsection,

1including all such requirements imposed by the certification under this subsection
2or imposed by order or otherwise by the commission.
AB696-engrossed,31,233 b. Provide notice to the commission to recertify the telecommunications utility
4under this subsection and impose on the telecommunications utility only those
5provisions of this chapter specified in this paragraph. No later than 30 days after
6receiving notice under this subd. 1. b., the commission shall issue an order granting
7recertification under this subsection and imposing on the telecommunications utility
8those provisions of this chapter specified in s. 196.203 (4m) (a) that are imposed on
9all alternative telecommunications utilities under s. 196.203 (3). The
10telecommunications utility shall be exempt from all provisions of ch. 201 and this
11chapter, except ss. 196.025 (6) and 196.206, and except as provided in subds. 4. and
125., and except as provided in the order under this subd. 1. b.; and except that, if the
13telecommunications utility has 50,000 or less access lines in this state, then, only
14with respect to its switched access services, the telecommunications utility is not
15exempt from s. 196.03; and except that, if the telecommunications utility has more
16than 50,000 and less than 150,000 access lines in this state, then, only with respect
17to its switched access services, the telecommunications utility is not exempt from ss.
18196.03 and 196.37. Except as provided in subds. 4. and 5., the granting of the
19recertification shall operate to terminate the telecommunications utility's prior
20certification, and all regulatory requirements related to the prior certification,
21including all such requirements imposed by the certification and all requirements
22imposed by the commission, whether by statute or commission rule or order, on the
23telecommunications utility are terminated on the effective date of the order.
AB696-engrossed,32,3
12. Issuance of a commission order under subd. 1. shall operate as a limited
2waiver of the telecommunications utility's right to an exemption under 47 USC 251
3(f) (1), which shall apply only to all of the following:
AB696-engrossed,32,44a. The requirements of 47 USC 251 (c) (1) and (2).
AB696-engrossed,32,65b. The requirements of 47 USC 251 (c) (5), but only with respect to the
6requirements of 47 CFR 51.325 (a) (1) and (2).
AB696-engrossed,32,107 3. Issuance of a commission order under subd. 1. shall operate as a limited
8waiver of the telecommunications utility's right to petition the commission for
9suspension or modification under 47 USC 251 (f) (2), which shall apply only to all of
10the following:
AB696-engrossed,32,1111a. The requirements of 47 USC 251 (b) and (c) (1) and (2).
AB696-engrossed,32,1312b. The requirements of 47 USC 251 (c) (5), but only with respect to the
13requirements of 47 CFR 51.325 (a) (1) and (2).
AB696-engrossed,32,1714 4. Regardless of whether a telecommunications utility certified under this
15subsection takes an action allowed under subd. 1., the telecommunications utility is
16subject, with respect to its wholesale telecommunications services, to all provisions
17specified in s. 196.203 (4m) (a) and (c).
AB696-engrossed,32,2018 5. This paragraph does not terminate any order of the commission regarding
19interconnection, unbundling, collocation, or any other obligation under 47 USC 251,
20or regarding wholesale telecommunications services.
AB696-engrossed, s. 88m 21Section 88m. 196.503 of the statutes is created to read:
AB696-engrossed,32,23 22196.503 Telecommunications provider of last resort obligations. (1)
23Definitions.
In this section:
AB696-engrossed,33,424 (a) "Basic voice service" means the provision to residential and small business
25customers of 2-way voice communication within a local calling area. "Basic voice

1service" includes extended community calling and extended area service. "Basic
2voice service" does not include the offering of Internet access service or any
3discretionary or optional services that may be provided to a residential or small
4business customer.
AB696-engrossed,33,65 (b) "Incumbent local exchange carrier" has the meaning given in 47 USC 251
6(h).
AB696-engrossed,33,87 (c) "Small business customer" means a business having 3 or fewer telephone
8numbers assigned to it.
AB696-engrossed,33,18 9(2) Incumbent local exchange carrier obligations. (a) Notwithstanding any
10other provision in this chapter, and except as provided in sub. (3), an incumbent local
11exchange carrier shall make basic voice service available to all residential and small
12business customers within a local exchange area in which it operates as an
13incumbent local exchange carrier. In making basic voice service available to a
14customer under this paragraph, an incumbent local exchange carrier shall provide
15the customer the ability to utilize a dial-up Internet access service or an equivalent
16service and an incumbent local exchange carrier may, but is not required to, offer
17Internet access service or any discretionary or optional services in a bundle or a
18package.
AB696-engrossed,33,2119 (b) An incumbent local exchange carrier may satisfy its obligations under par.
20(a) through an affiliate and through the use of interconnected voice over Internet
21protocol service or any available technology or mode.
AB696-engrossed,33,23 22(3) Waivers. (a) An incumbent local exchange carrier may apply to the
23commission for a waiver from compliance with sub. (2) (a) in a local exchange area.
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