1-1 By: Lucio S.B. No. 1937 1-2 (In the Senate - Filed April 24, 1997; April 25, 1997, read 1-3 first time and referred to Committee on Economic Development; 1-4 April 30, 1997, reported adversely, with favorable Committee 1-5 Substitute by the following vote: Yeas 11, Nays 0; April 30, 1997, 1-6 sent to printer.) 1-7 COMMITTEE SUBSTITUTE FOR S.B. No. 1937 By: Lucio 1-8 A BILL TO BE ENTITLED 1-9 AN ACT 1-10 relating to the provision of telecommunications services within 1-11 municipalities. 1-12 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-13 SECTION 1. Subtitle F, Title III, Public Utility Regulatory 1-14 Act of 1995 (Article 1446c-0, Vernon's Texas Civil Statutes), is 1-15 amended by adding Section 3.270 to read as follows: 1-16 Sec. 3.270. INTERIM COMMITTEE ON THE USE OF MUNICIPAL 1-17 RIGHTS-OF-WAY FOR THE PROVISION OF TELECOMMUNICATIONS SERVICES 1-18 WHOLLY WITHIN MUNICIPALITIES BY TELECOMMUNICATIONS UTILITIES. 1-19 (a) It is the policy of the State of Texas to encourage 1-20 competition among telecommunications utilities providing 1-21 telecommunications services wholly within municipalities in a 1-22 competitively neutral, nondiscriminatory manner; to reduce the 1-23 barriers to entry for such telecommunications utilities by 1-24 eliminating any conditions which prohibit or have the effect of 1-25 prohibiting the ability of any telecommunications utility to 1-26 provide telecommunications services wholly within municipalities; 1-27 to ensure that any compensation to municipalities for the 1-28 telecommunications utilities' use of municipal rights-of-way or 1-29 other public property to provide telecommunications services wholly 1-30 within municipalities is fair and reasonable to telecommunications 1-31 utilities and municipal residents who own the public property or 1-32 right-of-way; and to ensure that consumers benefit from such 1-33 competition. 1-34 (b) In order to effectuate the policies described in this 1-35 section, a joint interim committee shall be appointed to 1-36 investigate, report, and make legislative recommendations regarding 1-37 the state franchise policy for municipalities with respect to 1-38 telecommunications services provided wholly within municipalities 1-39 by telecommunications utilities. 1-40 (c) The joint committee shall be made up of: 1-41 (1) the chairman of the Senate Committee on Economic 1-42 Development; 1-43 (2) the chairman of the Senate Committee on 1-44 Intergovernmental Relations; 1-45 (3) the chairman of the House Committee on State 1-46 Affairs; 1-47 (4) the chairman of the House Committee on Urban 1-48 Affairs; 1-49 (5) one member of the senate appointed by the 1-50 lieutenant governor; and 1-51 (6) one member of the house of representatives 1-52 appointed by the speaker of the house of representatives. 1-53 (d) The joint committee shall investigate: 1-54 (1) the need for consistency in terms and conditions, 1-55 including the authorized compensation methodology, to be included 1-56 in municipal franchise agreements across the state; 1-57 (2) the impact of existing municipal fee agreements, 1-58 ordinances, charters, or other municipal requirements on the 1-59 provision of competitive telecommunications services wholly within 1-60 municipalities by telecommunications utilities and the authority of 1-61 the legislature to establish the basis for and require modification 1-62 of those agreements, ordinances, charters, or other municipal 1-63 requirements; 1-64 (3) the type and amount of cost incurred by 2-1 municipalities by virtue of the use of the municipalities' 2-2 rights-of-way and public property by telecommunications utilities 2-3 providing telecommunications services wholly within the 2-4 municipalities; 2-5 (4) the type, basis for, and amount of revenue 2-6 received by municipalities from telecommunications utilities 2-7 providing telecommunications services wholly within the 2-8 municipalities; 2-9 (5) the authority of municipalities to impose 2-10 conditions on or require compensation from telecommunications 2-11 utilities providing telecommunications services wholly within the 2-12 municipalities by resale of telecommunications services or the use 2-13 of facilities of other telecommunications utilities; and 2-14 (6) such other issues as are necessary to promote the 2-15 public interest and effectuate the policies in support of 2-16 competition by telecommunications utilities in the provision of 2-17 telecommunications services wholly within municipalities as set 2-18 forth in Subsection (a) of this section. 2-19 (e) The joint committee shall develop a report that analyzes 2-20 the state's policies with respect to the issues described in 2-21 Subsection (d) of this section and that includes recommended rule 2-22 or statutory changes to implement the policy options. The joint 2-23 committee may make preliminary reports but shall make a final 2-24 report not later than November 1, 1998. In this respect, affected 2-25 parties are placed on notice that any terms and conditions, 2-26 including any compensation, of municipal fee agreements, 2-27 ordinances, charters, or other municipal requirements now or 2-28 hereafter in existence may be superseded or subject to amendment, 2-29 to the extent inconsistent with the terms of legislation hereafter 2-30 enacted. 2-31 (f) On request of the joint committee, the commission, the 2-32 Texas Legislative Council, the governor's office, the senate, and 2-33 the house of representatives shall provide staff as necessary to 2-34 carry out the duties of the joint committee. The commission shall 2-35 conduct such investigations and provide such information and 2-36 reports as are necessary for the joint committee to make the 2-37 determinations required by Subsections (d)(3) and (d)(4) of this 2-38 section. The commission shall provide the information and final 2-39 reports to the joint committee no later than June 1, 1998. 2-40 (g) The joint committee is given such authority as is 2-41 necessary to carry out the duties assigned by this section and in 2-42 connection with those duties may call and hold hearings and compel 2-43 the attendance of witnesses and the production of information and 2-44 documents. 2-45 (h) If necessary to the discharge of its duties, the joint 2-46 committee may request the assistance of additional state agencies, 2-47 departments, or offices. The agencies, departments, or offices 2-48 shall provide the requested assistance. 2-49 (i) The joint committee is abolished on the date it issues 2-50 its final report under Subsection (e) of this section. 2-51 SECTION 2. This Act takes effect September 1, 1997. 2-52 SECTION 3. This Act expires September 1, 1999. 2-53 SECTION 4. The importance of this legislation and the 2-54 crowded condition of the calendars in both houses create an 2-55 emergency and an imperative public necessity that the 2-56 constitutional rule requiring bills to be read on three several 2-57 days in each house be suspended, and this rule is hereby suspended. 2-58 * * * * *