AB 606

Under current law, with certain exceptions, a person may not provide video

service unless the Department of Financial Institutions (DFI) has issued a video

service franchise to the person. The prohibition was enacted as part of

2007

Wisconsin Act 42

, which made substantial changes to the regulation of cable

television service. Current law defines "video service," in general, as cable television

service, and other service comparable to programming service provided by a

television broadcast station, that is provided through facilities located, at least in

part, in public rights-of-way. Current law refers to a person who is granted a video

service franchise as a "video service provider." One of the exceptions to the

prohibition applies to a person operating under a cable television franchise granted

by a municipality before the enactment of

2007 Wisconsin Act 42

. Current law allows

such a person to elect to continue to provide cable television service until the

franchise expires. Upon expiration of the municipally granted franchise, the person

must apply to DFI for a video service franchise. Current law refers to a person who

elects to operate under a municipally granted cable television franchise until the

franchise's expiration as an "interim cable operator."

This bill transfers DFI's duties regarding video service franchises and video

service providers to the Public Service Commission (PSC). In addition, the bill allows

the PSC to bill a franchise applicant or video service provider for the expenses

incurred by the PSC regarding an application and other matters under the PSC's

jurisdiction regarding the applicant or provider. The PSC has similar authority

under current law to bill a public utility for the costs incurred by the PSC in

regulating the public utility.

In addition, the bill requires a video service provider to apply to the PSC to

renew a video service franchise every five years. Current law does not require

renewal of a video service franchise. The PSC may not renew a video service

franchise under the bill if the PSC determines that the video service provider has

exhibited a pattern of noncompliance with requirements under current law relating

to video service, including state consumer protection requirements, as well as

regulations of the Federal Communications Commission (FCC) that are described

below. Also, the bill allows the PSC to revoke a video service franchise if the PSC

makes the same determination. Under current law, DFI may revoke a video service

franchise if DFI determines that a video service provider fails to substantially meet

a material requirement imposed by the DFI.

The bill also allows a municipality to require a video service provider that

provides service in the municipality a quarterly video service fee of no more than 5