By: Carona S.R. No. 1206
SENATE RESOLUTION
BE IT RESOLVED by the Senate of the State of Texas, 82nd
Legislature, Regular Session, 2011, That Senate Rule 12.03 be
suspended in part as provided by Senate Rule 12.08 to enable the
conference committee appointed to resolve the differences on
Senate Bill 1087 (state-issued certificates of franchise
authority to provide cable service and video service) to consider
and take action on the following matters:
(1) Senate Rules 12.03(1) and (2) are suspended to permit
the committee to change and omit text not in disagreement in
proposed SECTION 2 of the bill, in amended Subsection (a),
Section 66.004, Utilities Code, to read as follows:
(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 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),
(b-1), (b-2), (b-3), and (c).
Explanation: This change is necessary to clarify that a
cable service provider or video service provider that received a
franchise to provide cable service or video service to a
municipality is not eligible to seek a state-issued certificate
of franchise authority before the expiration of the franchise
except as provided by Section 66.004, Utilities Code.
(2) Senate Rules 12.03(1) and (4) are suspended to permit
the committee to change text which is not in disagreement and to
add text on a matter which is not included in either the house or
senate version of the bill in proposed SECTION 2 of the bill, in
added Subsections (b-1), (b-2), and (b-3), Section 66.004,
Utilities Code, to read as follows:
(b-1) Beginning September 1, 2011, a cable service
provider or video service provider in a municipality with a
population of less than 215,000 that was not allowed to or did not
terminate a municipal franchise under Subsection (b) may elect to
terminate not less than all unexpired franchises in
municipalities with a population of less than 215,000 and seek a
state-issued certificate of franchise authority for each area
served under a terminated municipal franchise by providing
written notice to the commission and each affected municipality
before January 1, 2012. A municipal franchise is terminated on
the date the commission issues a state-issued certificate of
franchise authority to the provider for the area served under
that terminated franchise.
(b-2) A cable service provider or video service provider
in a municipality with a population of at least 215,000 may
terminate a municipal franchise in that municipality in the
manner described by Subsection (b-1) if:
(1) the cable service provider or video service
provider is not the incumbent cable service provider in that
municipality; and
(2) the incumbent cable service provider received a
state-issued certificate of franchise authority from the
commission before September 1, 2011.
(b-3) A municipality with a population of at least
215,000 may enter into an agreement with any cable service
provider in the municipality to terminate a municipal cable
franchise before the expiration of the franchise. To the extent
that the mutually agreed on terms and conditions for early
termination of the unexpired municipal cable franchise conflict
with a provision of this chapter, the agreed on terms and
conditions control.
Explanation: This change is necessary to differentiate
between termination of franchises by service providers in
municipalities with populations of less than 215,000 and by
service providers in municipalities with populations of at least
215,000.
(3) Senate Rule 12.03(1) is suspended to permit the
committee to change text not in disagreement in proposed SECTION
2 of the bill, in amended Subsections (c) and (f), Section
66.004, Utilities Code, to read as follows:
(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 (b), (b-1), or (b-2) 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.
(f) Except as provided in this chapter, nothing in this
chapter is intended to abrogate, nullify, or adversely affect in
any way the contractual rights, duties, and obligations existing
and incurred by a cable service provider or a video service
provider before the date a franchise expires or the date a
provider terminates a franchise under Subsection (b-1) or (b-2),
as applicable, [enactment of this chapter,] and owed or owing to
any private person, firm, partnership, corporation, or other
entity including without limitation those obligations measured
by and related to the gross revenue hereafter received by the
holder of a state-issued certificate of franchise authority for
services provided in the geographic area to which such prior
franchise or permit applies. All liens, security interests,
royalties, and other contracts, rights, and interests in effect
on September 1, 2005, or the date a franchise is terminated under
Subsection (b-1) or (b-2) shall continue in full force and
effect, without the necessity for renewal, extension, or
continuance, and shall be paid and performed by the holder of a
state-issued certificate of franchise authority, and shall apply
as though the revenue generated by the holder of a state-issued
certificate of franchise authority continued to be generated
pursuant to the permit or franchise issued by the prior local
franchising authority or municipality within the geographic area
to which the prior permit or franchise applies. It shall be a
condition to the issuance and continuance of a state-issued
certificate of franchise authority that the private contractual
rights and obligations herein described continue to be honored,
paid, or performed to the same extent as though the cable service
provider continued to operate under its prior franchise or
permit, for the duration of such state-issued certificate of
franchise authority and any renewals or extensions thereof, and
that the applicant so agrees. Any person, firm, partnership,
corporation, or other entity holding or claiming rights herein
reserved may enforce same by an action brought in a court of
competent jurisdiction.
Explanation: These changes are necessary to add
cross-references to Subsection (b-2), Section 66.004, Utilities
Code.
(4) Senate Rules 12.03(1), (2), and (4) are suspended to
permit the committee to change text not in disagreement, omit
text not in disagreement, and add text on a matter which is not
included in either the house or senate version of the bill, in
proposed SECTION 4 of the bill, in amended Subsection (c),
Section 66.006 and added Subsection (c-2), Section 66.006,
Utilities Code, to read as follows:
(c) All fees paid to municipalities under this section
are paid in accordance with 47 U.S.C. Sections 531 and
541(a)(4)(B) and may be used by the municipality as allowed by
federal law; further, these payments are not chargeable as a
credit against the franchise fee payments authorized under this
chapter.
(c-2) A municipality that receives fees under this
section:
(1) shall maintain revenue from the fees in a
separate account established for that purpose;
(2) may not commingle revenue from the fees with any
other money;
(3) shall maintain a record of each deposit to and
disbursement from the separate account, including a record of the
payee and purpose of each disbursement; and
(4) may not spend revenue from the fees except
directly from the separate account.
Explanation: This change is necessary to clarify that all
fees paid to municipalities under Section 66.006, Utilities
Code, are not chargeable as a credit against franchise fee
payments authorized under Chapter 66, Utilities Code, and that
municipalities may not spend revenue from fees received under
Section 66.006 except by spending the revenue directly from a
separate account, to remove language requiring a detailed
accounting of deposits, and to reletter Subsection (c-3) as
Subsection (c-2).
(5) Senate Rules 12.03(1) and (2) are suspended to permit
the committee to change and omit text not in disagreement in
proposed SECTION 4 of the bill, in amended Subsection (d),
Section 66.006, Utilities Code, to read as follows:
(d) The following services shall continue to be provided
by the cable provider that was furnishing services pursuant to
its municipal cable franchise [until January 1, 2008, or] until
the expiration or termination [term] of the franchise [was to
expire, whichever is later,] and thereafter as provided in
Subdivisions (1) and (2) below:
(1) institutional network capacity, however defined
or referred to in the municipal cable franchise but generally
referring to a private line data network capacity for use by the
municipality for noncommercial purposes, shall continue to be
provided at the same capacity as was provided to the municipality
prior to the date of expiration or [the] termination, provided
that the municipality will compensate the provider for the actual
incremental cost of the capacity; and
(2) cable services to community public buildings,
such as municipal buildings and public schools, shall continue to
be provided to the same extent provided immediately prior to the
date of the termination. On [Beginning on January 1, 2008, or]
the expiration or termination of the franchise agreement,
[whichever is later,] a provider that provides the services may
deduct from the franchise fee to be paid to the municipality an
amount equal to the actual incremental cost of the services if
the municipality requires the services after that date. Such
cable service generally refers to the existing cable drop
connections to such facilities and the tier of cable service
provided pursuant to the franchise at the time of the expiration
or termination.
Explanation: This change is necessary to clarify that
institutional network capacity and cable services to community
public buildings shall continue to be provided in all
municipalities as they were provided before the expiration or
termination of a franchise.
(6) Senate Rule 12.03(1) is suspended to permit the
committee to change text not in disagreement in proposed SECTION
6 of the bill, to read as follows:
SECTION 6. (a) A municipality that received fees
described by Section 66.006(c), Utilities Code, before September
1, 2011, shall, on September 1, 2011, transfer any fees that have
not been disbursed to a separate account as required by Section
66.006(c-2), Utilities Code, as added by this Act.
(b) The change in law made by this Act in adding Section
66.006(c-2)(3), Utilities Code, applies only to transfers,
deposits, and disbursements made on or after the effective date
of this Act. A transfer, deposit, or disbursement made before
the effective date of this Act is governed by the law in effect on
the date the transfer, deposit, or disbursement was made, and the
former law is continued in effect for that purpose.
Explanation: These changes are necessary to correct
cross-references.
_______________________________
President of the Senate
I hereby certify that the
above Resolution was adopted by
the Senate on May 28, 2011, by the
following vote: Yeas 31, Nays 0.
_______________________________
Secretary of the Senate