LRB-1566/1
KSH:mfd:jf
1997 - 1998 LEGISLATURE
March 11, 1997 - Introduced by Senators Cowles, Darling, Rude, Schultz and
Farrow, cosponsored by Representatives
Jensen, Duff, Gronemus,
Ainsworth, Urban, Goetsch, Musser, Nass, F. Lasee, Kelso, Ladwig and
Seratti. Referred to Committee on Utility Regulation.
SB111,1,5
1An Act to renumber and amend 196.595 (2) (b) 1. to 5.;
to consolidate,
2renumber and amend 196.595 (2) (intro.) and (b) (intro.);
to amend 196.595
3(1) (a) 1., 196.595 (1) (a) 1m., 196.595 (1) (a) 2., 196.595 (1) (a) 4., 196.595 (1) (b)
4and 196.595 (1) (c); and
to create 196.595 (1) (d) of the statutes;
relating to:
5advertising practices of public utilities and sewerage service providers.
Analysis by the Legislative Reference Bureau
Under current law, a public utility engaged in the transmission, delivery or
furnishing of natural gas by means of pipes or mains, heat, light or power cannot
charge its ratepayers for advertising expenditures, unless the advertising produces
a demonstrated, direct and substantial benefit for ratepayers. Current law defines
advertising broadly to include all printed and published material and descriptive
literature of a public utility used in newspapers, magazines, radio and TV scripts,
billboards and similar displays; information favorable to a public utility on any issue
about which the utility is attempting to influence legislative or administrative action
by direct oral or written communication; descriptive literature and sales aids of all
kinds issued by a utility for presentation to utility consumers and other members of
the public; prepared sales talks to the public; and public informational facilities.
Current law restricts not only direct advertising expenditures, but also costs of
advertising incurred by making contributions to parent or affiliated companies or to
trade associations.
This bill expands these restrictions on advertising to cover all water utilities
and sewerage service providers, including lake districts, sanitary districts, sewerage
districts and municipal sewerage systems.
For further information see the state and local fiscal estimate, which will be
printed as an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
SB111, s. 1
1Section
1. 196.595 (1) (a) 1. of the statutes is amended to read:
SB111,2,42
196.595
(1) (a) 1. Printed and published material and descriptive literature of
3a
public utility
or a sewerage service provider used in newspapers, magazines, radio
4and TV scripts, billboards and similar displays.
SB111, s. 2
5Section
2. 196.595 (1) (a) 1m. of the statutes is amended to read:
SB111,2,116
196.595
(1) (a) 1m. Any material which provides information favorable to a
7public utility
or a sewerage service provider on any issue about which the
public 8utility
or sewerage service provider is attempting to influence legislative or
9administrative action by direct oral or written communication with any elective state
10official, agency official or legislative employe if the practice is regulated under subch.
11III of ch. 13.
SB111, s. 3
12Section
3. 196.595 (1) (a) 2. of the statutes is amended to read:
SB111,2,1713
196.595
(1) (a) 2. Descriptive literature and sales aids of all kinds issued by a
14public utility
or a sewerage service provider for presentation to
utility consumers and
15other members of the public, including but not limited to any material enclosed with
16or added to a
utility billing statement, circulars, leaflets, booklets, depictions,
17illustrations and form letters.
SB111, s. 4
18Section
4. 196.595 (1) (a) 4. of the statutes is amended to read:
SB111,3,3
1196.595
(1) (a) 4. Other materials and procedures enumerated by rule of the
2commission which promote or provide information to the public about a public utility
3or a sewerage service provider.
SB111, s. 5
4Section
5. 196.595 (1) (b) of the statutes is amended to read:
SB111,3,75
196.595
(1) (b) "Expenditure" means any cost of advertising directly incurred
6by a
public utility
or a sewerage service provider, and any cost of advertising incurred
7by contribution to parent or affiliated companies or to trade associations.
SB111, s. 6
8Section
6. 196.595 (1) (c) of the statutes is amended to read:
SB111,3,139
196.595
(1) (c) "Public utility" in this section means any public utility, as
10defined in s. 196.01
, engaged in the transmission, delivery or furnishing of natural
11gas by means of pipes or mains, heat, light or power. "Public utility" does not include
12any cooperative association organized under ch. 185 (5), other than a
13telecommunications utility.
SB111, s. 7
14Section
7. 196.595 (1) (d) of the statutes is created to read:
SB111,3,1815
196.595
(1) (d) "Sewerage service provider" means a public inland lake
16protection and rehabilitation district under subch. IV of ch. 33, a town sanitary
17district under subch. IX of ch. 60, a municipal sewerage system under s. 66.076 or
18a metropolitan sewerage district created under s. 66.22 or 66.882.
SB111, s. 8
19Section
8. 196.595 (2) (intro.) and (b) (intro.) of the statutes are consolidated,
20renumbered 196.595 (2) (intro.) and amended to read:
SB111,3,2221
196.595
(2) (intro.) A public utility
or a sewerage service provider may not
22charge its ratepayers for any expenditure for advertising unless the advertising
:
SB111,3,25
23(b) Produces produces a demonstrated, direct and substantial benefit for
24ratepayers
. Advertising which produces a direct and substantial benefit for
25ratepayers is limited to advertising which by doing at least one of the following:
SB111, s. 9
1Section
9. 196.595 (2) (b) 1. to 5. of the statutes are renumbered 196.595 (2)
2(a) to (e) and amended to read:
SB111,4,33
196.595
(2) (a)
Demonstrates Demonstrating energy conservation methods
;.
SB111,4,44
(b)
Conveys Conveying safety information on the use of energy
;.
SB111,4,55
(c)
Demonstrates Demonstrating methods of reducing ratepayer costs
;.
SB111,4,66
(d) Otherwise directly and substantially
benefits
benefiting ratepayers
; or.
SB111,4,77
(e)
Is required Complying with requirements imposed by law.
SB111,4,109
(1) This act first applies to expenditures for advertising incurred on the
10effective date of this subsection.
