By: Lucio S.B. No. 1937
A BILL TO BE ENTITLED
AN ACT
1-1 relating to the provision of telecommunications services within
1-2 municipalities.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Subtitle F, Title III, Public Utility Regulatory
1-5 Act of 1995 (Article 1446c-0, Vernon's Texas Civil Statutes), is
1-6 amended by adding Section 3.270 to read as follows:
1-7 Sec. 3.270. INTERIM COMMITTEE ON THE USE OF MUNICIPAL
1-8 RIGHTS-OF-WAY FOR THE PROVISION OF TELECOMMUNICATIONS SERVICES
1-9 WHOLLY WITHIN MUNICIPALITIES BY TELECOMMUNICATIONS UTILITIES.
1-10 (a) It is the policy of the State of Texas to encourage
1-11 competition among telecommunications utilities providing
1-12 telecommunications services wholly within municipalities in a
1-13 competitively neutral, nondiscriminatory manner; to reduce the
1-14 barriers to entry for such telecommunications utilities by
1-15 eliminating any conditions which prohibit or have the effect of
1-16 prohibiting the ability of any telecommunications utility to
1-17 provide telecommunications services wholly within municipalities;
1-18 to ensure that any compensation to municipalities for the
1-19 telecommunications utilities' use of municipal rights-of-way or
1-20 other public property to provide telecommunications services wholly
1-21 within municipalities is fair and reasonable to telecommunications
1-22 utilities and municipal residents who own the public property or
1-23 right-of-way; and to ensure that consumers benefit from such
2-1 competition.
2-2 (b) In order to effectuate the policies described in this
2-3 section, a joint interim committee shall be appointed to
2-4 investigate, report, and make legislative recommendations regarding
2-5 the state franchise policy for municipalities with respect to
2-6 telecommunications services provided wholly within municipalities
2-7 by telecommunications utilities.
2-8 (c) The joint committee shall be made up of:
2-9 (1) the chairman of the Senate Committee on Economic
2-10 Development;
2-11 (2) the chairman of the Senate Committee on
2-12 Intergovernmental Relations;
2-13 (3) the chairman of the House Committee on State
2-14 Affairs;
2-15 (4) the chairman of the House Committee on Urban
2-16 Affairs;
2-17 (5) one member of the senate appointed by the
2-18 lieutenant governor; and
2-19 (6) one member of the house of representatives
2-20 appointed by the speaker of the house of representatives.
2-21 (d)(1) The joint committee shall investigate:
2-22 (A) the need for consistency in terms and
2-23 conditions, including the authorized compensation methodology, to
2-24 be included in municipal franchise agreements across the state;
2-25 (B) the impact of existing municipal fee
3-1 agreements, ordinances, charters, or other municipal requirements
3-2 on the provision of competitive telecommunications services wholly
3-3 within municipalities by telecommunications utilities and the
3-4 authority of the legislature to establish the basis for and require
3-5 modification of those agreements, ordinances, charters, or other
3-6 municipal requirements;
3-7 (C) the type and amount of cost incurred by
3-8 municipalities by virtue of the use of the municipalities'
3-9 rights-of-way and public property by telecommunications utilities
3-10 providing telecommunications services wholly within the
3-11 municipalities;
3-12 (D) the type, basis for, and amount of revenue
3-13 received by municipalities from telecommunications utilities
3-14 providing telecommunications services wholly within the
3-15 municipalities;
3-16 (E) the authority of municipalities to impose
3-17 conditions on or require compensation from telecommunications
3-18 utilities providing telecommunications services wholly within the
3-19 municipalities by resale of telecommunications services or the use
3-20 of facilities of other telecommunications utilities; and
3-21 (F) such other issues as are necessary to
3-22 promote the public interest and effectuate the policies in support
3-23 of competition by telecommunications utilities in the provision of
3-24 telecommunications services wholly within municipalities as set
3-25 forth in Subsection (a) of this section.
4-1 (2) Notwithstanding the fact that cable television
4-2 companies are not "telecommunications utilities" under this Act,
4-3 the facilities and technologies used by telecommunications
4-4 utilities and cable television companies are the same or similar,
4-5 impose the same burdens on municipal rights-of-way, and are or will
4-6 be used to provide comparable competitive services. Some of the
4-7 issues to be investigated by the joint committee are applicable to
4-8 the cable television companies and are to be included within the
4-9 issues investigated by and reported on by the joint committee.
4-10 (e) The joint committee shall develop a report that analyzes
4-11 the state's policies with respect to the issues described in
4-12 Subsection (d) of this section and that includes recommended rule
4-13 or statutory changes to implement the policy options. The joint
4-14 committee may make preliminary reports but shall make a final
4-15 report not later than November 1, 1998. In this respect, affected
4-16 parties are placed on notice that any terms and conditions,
4-17 including any compensation, of municipal fee agreements,
4-18 ordinances, charters, or other municipal requirements now or
4-19 hereafter in existence may be superseded or subject to amendment,
4-20 to the extent inconsistent with the terms of legislation hereafter
4-21 enacted.
4-22 (f) On request of the joint committee, the commission, the
4-23 Texas Legislative Council, the governor's office, the senate, and
4-24 the house of representatives shall provide staff as necessary to
4-25 carry out the duties of the joint committee. The commission shall
5-1 conduct such investigations and provide such information and
5-2 reports as are necessary for the joint committee to make the
5-3 determinations required by Subsections (d)(1)(C) and (d)(1)(D) of
5-4 this section. The commission shall provide the information and
5-5 final reports to the joint committee no later than June 1, 1998.
5-6 (g) The joint committee is given such authority as is
5-7 necessary to carry out the duties assigned by this section and in
5-8 connection with those duties may call and hold hearings and compel
5-9 the attendance of witnesses and the production of information and
5-10 documents.
5-11 (h) If necessary to the discharge of its duties, the joint
5-12 committee may request the assistance of additional state agencies,
5-13 departments, or offices. The agencies, departments, or offices
5-14 shall provide the requested assistance.
5-15 (i) The joint committee is abolished on the date it issues
5-16 its final report under Subsection (e) of this section.
5-17 SECTION 2. This Act takes effect September 1, 1997.
5-18 SECTION 3. This Act expires September 1, 1999.
5-19 SECTION 4. The importance of this legislation and the
5-20 crowded condition of the calendars in both houses create an
5-21 emergency and an imperative public necessity that the
5-22 constitutional rule requiring bills to be read on three several
5-23 days in each house be suspended, and this rule is hereby suspended.