Texas 2013 - 83rd Regular

Texas Senate Bill SB327 Compare Versions

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1	1	By: Carona S.B. No. 327
2	2	(Hilderbran)
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to termination of franchises to provide cable or video
8	8	service in municipalities.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. Subsections (b), (c), and (f), Section 66.004,
11	11	Utilities Code, are amended to read as follows:
12	12	(b) Beginning September 1, 2005, a cable service provider or
13	13	video service provider [that is not the incumbent cable service
14	14	provider and serves fewer than 40 percent of the total cable
15	15	customers in a particular municipal franchise area] may elect to
16	16	terminate a [that] municipal franchise and seek a state-issued
17	17	certificate of franchise authority by providing written notice to
18	18	the commission and the affected municipality [before January 1,
19	19	2006]. The municipal franchise is terminated on the date the
20	20	commission issues the state-issued certificate of franchise
21	21	authority.
22	22	(c) A cable service provider that elects under this section
23	23	[Subsection (b), (b-1), or (b-2)] to terminate an existing
24	24	municipal franchise is responsible for remitting to the affected
25	25	municipality before the 91st day after the date the municipal
26	26	franchise is terminated any accrued but unpaid franchise fees due
27	27	under the terminated franchise. If the cable service provider has
28	28	credit remaining from prepaid franchise fees, the provider may
29	29	deduct the amount of the remaining credit from any future fees or
30	30	taxes it must pay to the municipality, either directly or through
31	31	the comptroller.
32	32	(f) Except as provided in this chapter, nothing in this
33	33	chapter is intended to abrogate, nullify, or adversely affect in
34	34	any way the contractual rights, duties, and obligations existing
35	35	and incurred by a cable service provider or a video service provider
36	36	before the date a franchise expires or the date a provider
37	37	terminates a franchise under this section [Subsection (b-1) or
38	38	(b-2), as applicable,] and owed or owing to any private person,
39	39	firm, partnership, corporation, or other entity including without
40	40	limitation those obligations measured by and related to the gross
41	41	revenue hereafter received by the holder of a state-issued
42	42	certificate of franchise authority for services provided in the
43	43	geographic area to which such prior franchise or permit
44	44	applies. All liens, security interests, royalties, and other
45	45	contracts, rights, and interests in effect on September 1, 2005, or
46	46	the date a franchise is terminated under this section [Subsection
47	47	(b-1) or (b-2)] shall continue in full force and effect, without the
48	48	necessity for renewal, extension, or continuance, and shall be paid
49	49	and performed by the holder of a state-issued certificate of
50	50	franchise authority, and shall apply as though the revenue
51	51	generated by the holder of a state-issued certificate of franchise
52	52	authority continued to be generated pursuant to the permit or
53	53	franchise issued by the prior local franchising authority or
54	54	municipality within the geographic area to which the prior permit
55	55	or franchise applies. It shall be a condition to the issuance and
56	56	continuance of a state-issued certificate of franchise authority
57	57	that the private contractual rights and obligations herein
58	58	described continue to be honored, paid, or performed to the same
59	59	extent as though the cable service provider continued to operate
60	60	under its prior franchise or permit, for the duration of such
61	61	state-issued certificate of franchise authority and any renewals or
62	62	extensions thereof, and that the applicant so agrees. Any person,
63	63	firm, partnership, corporation, or other entity holding or claiming
64	64	rights herein reserved may enforce same by an action brought in a
65	65	court of competent jurisdiction.
66	66	SECTION 2. Subsection (h), Section 66.009, Utilities Code,
67	67	is amended to read as follows:
68	68	(h) Where technically feasible, the holder of a
69	69	state-issued certificate of franchise authority that is not an
70	70	incumbent cable service provider and an incumbent cable service
71	71	provider, including an incumbent cable service provider that holds
72	72	a state-issued certificate of franchise authority [issued under
73	73	Section 66.004(b-1)], shall use reasonable efforts to interconnect
74	74	their cable or video systems for the purpose of providing PEG
75	75	programming. Interconnection may be accomplished by direct cable,
76	76	microwave link, satellite, or other reasonable method of
77	77	connection. The holder of a state-issued certificate of franchise
78	78	authority and the incumbent cable service provider shall negotiate
79	79	in good faith, and the incumbent cable service provider may not
80	80	withhold interconnection of PEG channels.
81	81	SECTION 3. Subsections (a), (b-1), (b-2), and (b-3),
82	82	Section 66.004, Utilities Code, are repealed.
83	83	SECTION 4. This Act takes effect immediately if it receives
84	84	a vote of two-thirds of all the members elected to each house, as
85	85	provided by Section 39, Article III, Texas Constitution. If this
86	86	Act does not receive the vote necessary for immediate effect, this
87	87	Act takes effect September 1, 2013.