By: Carona S.B. No. 327
(Hilderbran)
A BILL TO BE ENTITLED
AN ACT
relating to termination of franchises to provide cable or video
service in municipalities.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subsections (b), (c), and (f), Section 66.004,
Utilities Code, are amended to read as follows:
(b) Beginning September 1, 2005, a cable service provider or
video service provider [that is not the incumbent cable service
provider and serves fewer than 40 percent of the total cable
customers in a particular municipal franchise area] may elect to
terminate a [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,
2006]. The municipal franchise is terminated on the date the
commission issues the state-issued certificate of franchise
authority.
(c) A cable service provider that elects under this section
[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 this section [Subsection (b-1) or
(b-2), as applicable,] 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 this section [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.
SECTION 2. Subsection (h), Section 66.009, Utilities Code,
is amended to read as follows:
(h) Where technically feasible, the holder of a
state-issued certificate of franchise authority that is not an
incumbent cable service provider and an incumbent cable service
provider, including an incumbent cable service provider that holds
a state-issued certificate of franchise authority [issued under
Section 66.004(b-1)], shall use reasonable efforts to interconnect
their cable or video systems for the purpose of providing PEG
programming. Interconnection may be accomplished by direct cable,
microwave link, satellite, or other reasonable method of
connection. The holder of a state-issued certificate of franchise
authority and the incumbent cable service provider shall negotiate
in good faith, and the incumbent cable service provider may not
withhold interconnection of PEG channels.
SECTION 3. Subsections (a), (b-1), (b-2), and (b-3),
Section 66.004, Utilities Code, are repealed.
SECTION 4. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2013.