By Wolens H.B. No. 1777
76R1906 CBH-F
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to compensation a municipality may receive from a provider
1-3 of communications services in the municipality.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Chapter 311, Transportation Code, is amended by
1-6 adding Subchapter F to read as follows:
1-7 SUBCHAPTER F. COMPENSATION FOR RIGHT TO PROVIDE
1-8 TELECOMMUNICATIONS SERVICES AND TO USE PUBLIC RIGHTS-OF-WAY
1-9 Sec. 311.121. DEFINITIONS. In this chapter:
1-10 (1) "Communications services" includes local exchange
1-11 telephone services, reselling or rebundling telecommunications
1-12 services, commercial mobile services, personal communication
1-13 service (PCS) and other wireless technology, Internet services,
1-14 paging services, and satellite services.
1-15 (2) "Public right-of-way" means the area on, below, or
1-16 above a public roadway, highway, street, bridge, cartway, bicycle
1-17 lane, or public sidewalk in which the municipality has an interest,
1-18 including other dedicated rights-of-way for travel purposes and
1-19 utility easements. The term does not include the airwaves above a
1-20 right-of-way with regard to nonwire telecommunications.
1-21 Sec. 311.122. COMPENSATION FOR USE OF PUBLIC RIGHT-OF-WAY.
1-22 (a) In addition to any other compensation authorized by law, a
1-23 municipality by ordinance may require all providers of
1-24 communications services who own facilities located within public
2-1 rights-of-way within the municipality to pay reasonable
2-2 compensation for the use of those rights-of-way.
2-3 (b) The compensation a provider is required to pay under
2-4 this section may not exceed an amount equal to four percent of the
2-5 provider's gross receipts from the sale of communications services
2-6 within the municipality.
2-7 Sec. 311.123. COMPENSATION FOR RIGHT TO PROVIDE SERVICE.
2-8 (a) In addition to any other compensation authorized by law, a
2-9 municipality by ordinance may require all providers of
2-10 communications services who do not use public rights-of-way within
2-11 the municipality to pay reasonable compensation for the right to
2-12 provide services within the municipality.
2-13 (b) The compensation a provider is required to pay under
2-14 this section may not exceed an amount equal to two percent of the
2-15 provider's gross receipts from the sale of communications services
2-16 within the municipality.
2-17 Sec. 311.124. COMPENSATION FOR COST OF EXERCISING POLICE
2-18 POWER REGULATION. (a) In addition to the compensation provided by
2-19 Sections 311.122 and 311.123 and other law, a municipality by
2-20 ordinance may require all providers of communications services
2-21 within the municipality to pay reasonable compensation for the
2-22 costs to the municipality of exercising police power regulation
2-23 over the providers.
2-24 (b) The compensation a provider is required to pay under
2-25 this section may not exceed an amount equal to one percent of the
2-26 provider's gross receipts from the sale of communications services
2-27 within the municipality.
3-1 Sec. 311.125. LIMITATION ON OTHER CHARGES. (a) A
3-2 municipality that imposes a charge under Section 311.122, 311.123,
3-3 or 311.124 may not require the provider of communications services
3-4 paying the charge to pay any other fee, tax, or charge, including a
3-5 street rental fee, franchise fee, or license, permit, or consent
3-6 fee, for the use of a public right-of-way, for the right to provide
3-7 services in the municipality, or for the costs to the municipality
3-8 of exercising police powers over the provider.
3-9 (b) This section does not affect the authority of a
3-10 municipality to impose a sales and use tax under Chapter 321, Tax
3-11 Code.
3-12 Sec. 311.126. ORDINANCE. (a) An ordinance authorizing the
3-13 imposition of a charge under Section 311.122, 311.123, or 311.124
3-14 shall:
3-15 (1) require the municipality to impose the charge in a
3-16 manner that is competitively neutral and nondiscriminatory; and
3-17 (2) state the rate of the charge.
3-18 (b) A municipality may repeal an ordinance authorizing the
3-19 imposition of a charge under Section 311.122 and adopt a new
3-20 ordinance requiring all providers of communications services who
3-21 own facilities within public rights-of-way within the municipality
3-22 to pay reasonable compensation for the value of the providers' use
3-23 of those rights-of-way. The compensation authorized by this
3-24 subsection may not exceed an amount equal to the value of that use,
3-25 as determined by a study conducted by the municipality.
3-26 SECTION 2. This Act does not affect the validity of a
3-27 franchise agreement with a provider of communications services
4-1 executed before the effective date of this Act, and a municipality
4-2 may continue to enforce that agreement and to collect franchise
4-3 fees and other charges under that franchise agreement until the
4-4 date on which the agreement expires by its own terms.
4-5 SECTION 3. (a) Section 1 of this Act takes effect September
4-6 1, 1999. The other sections of this Act take effect on the first
4-7 date on which they may take effect under Section 39, Article III,
4-8 Texas Constitution.
4-9 (b) Except as provided by Section 2 of this Act, on and
4-10 after September 1, 1999, a municipality may not require a provider
4-11 of communications services to pay a franchise fee or other charge
4-12 for using a public right-of-way or providing services within the
4-13 municipality unless the municipality has adopted an ordinance
4-14 required by Subchapter F, Chapter 311, Transportation Code, as
4-15 added by this Act, and has executed a franchise agreement with the
4-16 provider in accordance with that ordinance.
4-17 SECTION 4. The importance of this legislation and the
4-18 crowded condition of the calendars in both houses create an
4-19 emergency and an imperative public necessity that the
4-20 constitutional rule requiring bills to be read on three several
4-21 days in each house be suspended, and this rule is hereby suspended,
4-22 and that this Act take effect and be in force according to its
4-23 terms, and it is so enacted.