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. < By: Lucio S.B. No. 1937 A BILL TO BE