By: Dunnam H.B. No. 3970
A BILL TO BE ENTITLED
AN ACT
relating to the authority to seek and the provision of service under
a state-issued cable or video franchise.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 66.004, Utilities Code, is amended by
amending Subsections (a) and (c) to read as follows:
(a) Beginning September 1, 2009, a [A] cable service
provider or a video service provider that currently has or had
previously received a franchise to provide cable service or video
service with respect to such municipalities may elect to terminate
that municipal franchise and seek a state-issued certificate of
franchise authority by providing written notice to the commission
and the affected municipality before January 1, 2010. The
municipal franchise is terminated on the date the commission issues
the state-issued certificate of franchise authority [is not
eligible to seek a state-issued certificate of franchise authority
under this chapter as to those municipalities until the expiration
date of the existing franchise agreement, except as provided by
Subsections (b) and (c)].
(c) A cable service provider that [serves fewer than 40
percent of the total cable customers in a municipal franchise area
and that] elects under Subsection (a) or (b) to terminate an
existing municipal franchise is responsible for remitting to the
affected municipality before the 91st day after the date the
municipal franchise is terminated any accrued but unpaid franchise
fees due under the terminated franchise. If the cable service
provider has credit remaining from prepaid franchise fees, the
provider may deduct the amount of the remaining credit from any
future fees or taxes it must pay to the municipality, either
directly or through the comptroller.
SECTION 2. Section 66.014, Utilities Code, is amended to
read as follows:
Sec. 66.014. DISCRIMINATION PROHIBITED. (a) The purpose
of this section is to prevent discrimination among potential
residential subscribers.
(b) A cable service provider or video service provider that
has been granted a state-issued certificate of franchise authority
may not deny access to service to any group of potential residential
subscribers in its video service area because of the race or income
of the residents in the local area in which such group resides.
(c) An affected person may seek enforcement of the
requirements described by Subsection (b) by initiating a proceeding
with the commission. A municipality within which the potential
residential cable service or video service subscribers referenced
in Subsection (b) may be considered an affected person for purposes
of this section.
(d) In a proceeding described by Subsection (c), the
commission may not order enforcement of the requirements described
by Subsection (b) if the cable service provider or video service
provider demonstrates that:
(1) three years after the date the cable service
provider or video service provider began providing cable service or
video service in its video service area, at least 40 percent of the
households with access to the cable service provider's or video
service provider's service are low-income households; or
(2) five years after the date the cable service
provider or video service provider began providing cable service or
video service in its video service area and each year thereafter, at
least 50 percent of the households with access to the cable service
provider's or video service provider's service are low-income
households [The holder of a state-issued certificate of franchise
authority shall have a reasonable period of time to become capable
of providing cable service or video service to all households
within the designated franchise area as defined in Section
66.003(b)(4) and may satisfy the requirements of this section
through the use of an alternative technology that provides
comparable content, service, and functionality].
(e) At the end of the first, third, fifth, and tenth years
after the issuance of a state-issued certificate of franchise
authority, the holder of a state-issued certificate of franchise
authority shall provide the commission with evidence certifying
compliance with Subsection (b) [Notwithstanding any provision of
this chapter, the commission has the authority to make the
determination regarding the comparability of the technology and the
service provided]. Notwithstanding any provision of this chapter,
the commission has the authority to monitor the deployment of cable
services, video services, or alternate technology.
SECTION 3. Section 66.007, Utilities Code, is repealed.
SECTION 4. This Act takes effect September 1, 2009.