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