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; to ensure the ability of municipalities to exercise
2-1 their authority to manage the public rights-of-way; and to ensure
2-2 that consumers benefit from such competition.
2-3 (b) In order to effectuate the policies described in this
2-4 section, a joint interim committee shall be appointed to
2-5 investigate, report, and make legislative recommendations regarding
2-6 the state franchise policy for municipalities with respect to
2-7 telecommunications services provided wholly within municipalities
2-8 by telecommunications utilities.
2-9 (c) The joint committee shall be made up of:
2-10 (1) the chairman of the Senate Committee on Economic
2-11 Development;
2-12 (2) the chairman of the Senate Committee on
2-13 Intergovernmental Relations;
2-14 (3) the chairman of the House Committee on State
2-15 Affairs;
2-16 (4) the chairman of the House Committee on Urban
2-17 Affairs;
2-18 (5) one member of the senate appointed by the
2-19 lieutenant governor; and
2-20 (6) one member of the house of representatives
2-21 appointed by the speaker of the house of representatives.
2-22 (d)(1) The joint committee shall investigate:
2-23 (A) the need for consistency in terms and
2-24 conditions, including the authorized compensation methodology, to
2-25 be included in municipal franchise agreements across the state;
3-1 (B) the impact of existing municipal fee
3-2 agreements, ordinances, charters, or other municipal requirements
3-3 on the provision of competitive telecommunications services wholly
3-4 within municipalities by telecommunications utilities and the
3-5 authority of the legislature to establish the basis for and require
3-6 modification of those agreements, ordinances, charters, or other
3-7 municipal requirements;
3-8 (C) the type and amount of cost incurred by
3-9 municipalities by virtue of the use of the municipalities'
3-10 rights-of-way and public property by telecommunications utilities
3-11 providing telecommunications services wholly within the
3-12 municipalities;
3-13 (D) the type, basis for, and amount of revenue
3-14 received by municipalities from telecommunications utilities
3-15 providing telecommunications services wholly within the
3-16 municipalities;
3-17 (E) the authority of municipalities to impose
3-18 conditions on or require compensation from telecommunications
3-19 utilities providing telecommunications services wholly within the
3-20 municipalities by resale of telecommunications services or the use
3-21 of facilities of other telecommunications utilities; and
3-22 (F) such other issues as are necessary to
3-23 promote the public interest and effectuate the policies in support
3-24 of competition by telecommunications utilities in the provision of
3-25 telecommunications services wholly within municipalities as set
4-1 forth in Subsection (a) of this section.
4-2 (2) Notwithstanding the fact that cable television
4-3 companies are not "telecommunications utilities" under this Act,
4-4 the facilities and technologies used by telecommunications
4-5 utilities and cable television companies are the same or similar,
4-6 impose the same burdens on municipal rights-of-way, and are or will
4-7 be used to provide comparable competitive services. Some of the
4-8 issues to be investigated by the joint committee are applicable to
4-9 the cable television companies and are to be included within the
4-10 issues investigated by and reported on by the joint committee.
4-11 (e) The joint committee shall develop a report that analyzes
4-12 the state's policies with respect to the issues described in
4-13 Subsection (d) of this section and that includes recommended rule
4-14 or statutory changes to implement the policy options. The joint
4-15 committee may make preliminary reports but shall make a final
4-16 report not later than November 1, 1998. In this respect, affected
4-17 parties are placed on notice that any terms and conditions,
4-18 including any compensation, of municipal fee agreements,
4-19 ordinances, charters, or other municipal requirements now or
4-20 hereafter in existence may be superseded or subject to amendment,
4-21 to the extent inconsistent with the terms of legislation hereafter
4-22 enacted.
4-23 (f) On request of the joint committee, the commission, the
4-24 Texas Legislative Council, the governor's office, the senate, and
4-25 the house of representatives shall provide staff as necessary to
5-1 carry out the duties of the joint committee. The commission shall
5-2 conduct such investigations and provide such information and
5-3 reports as are necessary for the joint committee to make the
5-4 determinations required by Subsections (d)(1)(C) and (d)(1)(D) of
5-5 this section. The commission shall provide the information and
5-6 final reports to the joint committee no later than June 1, 1998.
5-7 (g) The joint committee is given such authority as is
5-8 necessary to carry out the duties assigned by this section and in
5-9 connection with those duties may call and hold hearings and compel
5-10 the attendance of witnesses and the production of information and
5-11 documents.
5-12 (h) If necessary to the discharge of its duties, the joint
5-13 committee may request the assistance of additional state agencies,
5-14 departments, or offices. The agencies, departments, or offices
5-15 shall provide the requested assistance.
5-16 (i) The joint committee is abolished on the date it issues
5-17 its final report under Subsection (e) of this section.
5-18 SECTION 2. This Act takes effect September 1, 1997.
5-19 SECTION 3. This Act expires September 1, 1999.
5-20 SECTION 4. The importance of this legislation and the
5-21 crowded condition of the calendars in both houses create an
5-22 emergency and an imperative public necessity that the
5-23 constitutional rule requiring bills to be read on three several
5-24 days in each house be suspended, and this rule is hereby suspended.
_______________________________ _______________________________
President of the Senate Speaker of the House
I hereby certify that S.B. No. 1937 passed the Senate on
May 5, 1997, by a viva-voce vote; and that the Senate concurred in
House amendment on May 28, 1997, by a viva-voce vote.
_______________________________
Secretary of the Senate
I hereby certify that S.B. No. 1937 passed the House, with
amendment, on May 26, 1997, by a non-record vote.
_______________________________
Chief Clerk of the House
Approved:
_______________________________
Date
_______________________________
Governor