Texas Senate Bill SB327

Texas 2013 - 83rd Regular

Caption

Relating to termination of franchises to provide cable or video service in municipalities.

Impact

The bill amends existing statutes in the Texas Utilities Code, specifically addressing the relationship between municipal franchises and state authority. By enabling non-incumbent service providers to terminate their local franchises, the bill potentially enhances competition within the industry. It requires that terminated franchise fees be settled before obtaining a state authorization and ensures that all contractual obligations remain effective. This shift to state control is intended to create a more uniform regulatory environment for service providers across different municipalities.

Summary

SB327 focuses on the modification of municipal franchises related to cable and video service providers in Texas. The bill allows cable service providers that are not incumbent providers to terminate their local municipal franchises under certain conditions, and to operate under a state-issued certificate of franchise authority. This change is significant as it shifts the regulatory framework for cable services from local to state authority, streamlining the process for new entrants into the market while impacting existing local contracts.

Contention

Notably, there may be points of contention surrounding the implications of SB327. Critics argue that this may undermine local governance and control over urban services, as municipal franchises are established to allow local governments to manage service provision according to specific community needs. There could also be concerns regarding the continuity of public access television programming, as interconnection agreements between providers for such content may need to be rigorously defined and enforced under the new regulatory framework.