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.


1-13           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:




1-19     (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.

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