TELECOMMUNICATIONS UTILITIES
Minutes
Wednesday, August 26, 1998
page
MINUTES
LEGISLATIVE COMMITTEE ON MUNICIPAL FRANCHISE AGREEMENTS FOR
TELECOMMUNICATIONS UTILITIES
Wednesday, August 26, 1998
1:00 pm
Capitol Extension, Room E1.028
Pursuant to a notice posted in accordance with Senate Rule 11.11, a
public hearing of the Legislative Committee on Municipal Franchise
Agreements for Telecommunications Utilities was held on Wednesday,
August 26, 1998 in the Capitol Extension, Room E1.028, at Austin,
Texas.
MEMBERS PRESENT: MEMBERS ABSENT:
Senator Eddie Lucio, Jr.
Senator David Sibley
Senator Florence Shapiro
Representative Bill Carter
Representative Fred Hill
Representative Steven Wolens
Chairman Lucio called the meeting to order at 1:10 pm.
The following members arrived after the roll was called: none.
The following business was transacted:
Chairman Lucio and Chairman Carter gave opening remarks.
Chairman Lucio gave comments regarding the interim charge and the
committee hearings that were held.
Chairman Carter gave comments regarding the interim charge.
Senator Sibley gave comments regarding committee procedure.
Senator Shapiro gave comments regarding the interim charge.
A discussion on the report followed.
Recommendation #1
Chairman Lucio discussed recommendation #1.
Representative Hill discussed specific concerns relating to
"telecommunications providers
certificated to provide local
exchange service under the Texas
Utilities Code that occupy the ROW
of that city" and whether that
applies only to those entities
which own the facilities occupying
the ROW and not entities who do not
own facilities within the ROW.
Motion by Chairman Lucio to open the floor to public
testimony.
Motion carried without objection.
Chairman Lucio recognized Mr. Jack Strong, representing
TEXALTEL, to address Rep.
Hill's concerns.
Discussion followed.
Motion by Chairman Carter to reinsert "i.e. the imposition of
a flat fee on each access line that physically utilizes the
public ROWs to connect an end user".
Discussion on the motion.
Objection by Wolens.
5 ayes (Carter, Hill, Lucio, Shapiro, Sibley), 1 nay (Wolens);
the motion carried.
Motion by Senator Shapiro to change "cost" to "functions".
Motion by Senator Shapiro to change "fee" to "compensation".
Discussion on the motions.
No objection; the motions carried.
Motion by Representative Wolens to strike "a" before "uniform"
and add "s" to "ordinance", and add "or any other appropriate
method" after "fee".
Discussion on the motion.
Objection by Representative Hill.
1 aye (Wolens), 5 nays (Carter, Hill, Lucio, Shapiro, Sibley);
motion failed.
Motion by Chairman Carter to approve recommendation #1 as
modified.
Objection by Representative Wolens.
5 ayes (Carter, Hill, Lucio, Shapiro, Sibley),1 nay (Wolens);
recommendation approved.
Recommendation #2
Chairman Lucio discussed recommendation #2.
Motion by Senator Shapiro to replace "costs" with "functions".
Amended by Chairman Carter to read "functions directly".
Amendment accepted by Senator Shapiro.
Discussion on the motion.
Motion carried without objection.
Motion by Representative Wolens to strike "(electric, gas,
water, etc.)"
A brief discussion followed.
Motion carried without objection.
Motion by Representative Wolens to add " 39" to description.
Motion carried without objection.
Motion by Representative Hill to approve recommendation #2 as
modified.
Objection by Representative Wolens.
5 ayes (Carter, Hill, Lucio, Shapiro, Sibley), 1 nay (Wolens);
recommendation approved.
Recommendation #3
Chairman Lucio discussed recommendation #3.
Motion by Senator Shapiro to add the following language after
"1998": "The cities' position has been that cities have
historically negotiated based on value of the ROW. The
industry position has been that current ROW revenues are,
historically, simply the results of negotiations."
Discussion on motion.
Motion by Representative Hill to strike "based on value and
establishing" from original language.
Motion by Representative Wolens to amend Representative Hill's
language by adding "and telecommunication utilities".
Amendment accepted by Representative Hill.
Discussion of Representative Hill's motion.
Representative Hill's motion carried without objection.
Senator Shapiro's original motion was withdrawn.
Chairman Carter moved to adopt recommendation #3 as amended.
Motion carried without objection.
Discussion on the recommendation.
Motion to reconsider the vote by Representative Hill.
Motion carried without objection.
Representative Hill moves to add "franchise" and strike "per
line".
Discussion.
Motion was withdrawn by Representative Hill.
Motion by Representative Hill to strike everything after
"1998" and approve recommendation #3 as modified.
Motion carried without objection; recommendation #3 approved.
Recommendation #4
Chairman Lucio discussed recommendation #4.
Motion by Senator Shapiro to strike last sentence and add the
following language: "Establish ultimate audit authority within
the Public Utility Commission of Texas while not prohibiting
the ability of the cities to conduct their own audits."
Discussion on the motion.
Motion by Representative Hill to change "ultimate" to "final".
Amendment accepted by Senator Shapiro.
Motion carried without objection.
Senator Shapiro moved to adopt recommendation #4 as amended.
Objection by Representative Wolens.
Discussion on the motion.
Testimony given by staff.
Motion carried with 6 ayes (Carter, Hill, Lucio, Shapiro,
Sibley, Wolens), 0 nays; recommendation #4 approved.
Recommendation #5
Chairman Lucio discussed recommendation #5.
Discussion of intent of the recommendation followed.
Motion to adopt recommendation by Chairman Carter.
Objection by Representative Wolens.
Senator Sibley expressed reservations.
Motion carried with 4 ayes (Carter, Hill, Lucio, Sibley), 1
nay (Wolens), 1 absent (Shapiro).
Recommendation #6
Chairman Lucio discussed recommendation #6.
Discussion by Representative Wolens to change "only" to
"preferred".
Senator Sibley expressed reservations about current language.
Motion to adopt recommendation by Chairman Carter.
Motion carried with 4 ayes (Carter, Hill, Lucio, Sibley), 1
nay (Wolens), 1 absent (Shapiro).
Recommendation #7
Chairman Lucio discussed recommendation #7.
Discussion followed.
Motion to adopt the recommendation by Representative Wolens.
Motion carried without objection.
Recommendation #8
Chairman Lucio discussed recommendation #8.
Motion by Representative Wolens to remove the second "a" and
add "s" to "ordinance".
Senator Sibley expressed reservations about current wording.
Motion failed with 2 ayes (Sibley, Wolens), 3 nays (Carter,
Hill, Lucio), 1 absent (Shapiro).
Motion by Representative Wolens to strike "geographic" and
strike "relating to excavation".
Chairman Carter amended motion to say "presence in ROW" rather
than "excavation".
Amendment accepted by Representative Wolens.
Motion carried without objection.
Motion by Chairman Carter to adopt recommendation #8 as
modified.
Motion carried without objection.
Recommendation #9
Chairman Lucio discussed recommendation #9.
Discussion followed.
Motion by Representative Wolens to strike "and cable
operators".
2nd by Chairman Carter.
Objection by Representative Hill.
Discussion on the motion.
Objection by Representative Hill withdrawn.
Objection by Chairman Lucio.
Discussion on the motion.
Objection by Chairman Lucio withdrawn.
Motion to strike "and cable operators" by Representative
Wolens carried without objection.
Chairman Carter moved to approve recommendation #9 as
modified.
Motion carried without objection.
Motion by Senator Shapiro to vote "aye" on adoption of report stated
by Chairman Lucio.
Motion by Chairman Carter to adopt the report as amended.
Discussion on the motion.
Request by Representative Wolens to indicate status of lawsuits in
text of the report.
Request by Representative Wolens to attach the TCG/Detroit case.
Request by Representative Wolens to attach his "pass through"
letter.
Senator Sibley expressed reservations about the report.
Motion carried with 5 ayes (Carter, Hill, Lucio, Shapiro, Sibley), 1
nay (Wolens).
Representative Wolens files minority report with the Co-Chairmen.
There being no further business, at 3:30 pm Chairman Carter moved
that the Committee stand recessed subject to the call of the Chair.
Without objection, it was so ordered.
______________________
Senator Eddie Lucio, Jr.
Co-Chairman
______________________
Representative Bill Carter
Co-Chairman
______________________
Amy B. Kelley
Clerk