By Brimer H.B. No. 1400
77R3303 CBH-F
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the regulation of cable television companies and cable
1-3 television services; providing administrative penalties.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Section 11.002(c), Utilities Code, is amended to
1-6 read as follows:
1-7 (c) Significant changes have occurred in the
1-8 telecommunications and electric power industries since the Public
1-9 Utility Regulatory Act was originally adopted. In addition,
1-10 developments in the cable television industry have resulted in the
1-11 convergence of cable and telecommunications providers in the
1-12 provision of advanced services. Changes in technology and market
1-13 structure have increased the need for minimum standards of service
1-14 quality, customer service, and fair business practices to ensure
1-15 high-quality service to customers and a healthy marketplace where
1-16 competition is permitted by law. It is the purpose of this title
1-17 to grant the Public Utility Commission of Texas authority to make
1-18 and enforce rules necessary to protect customers of
1-19 telecommunications, cable, or advanced services and electric
1-20 services consistent with the public interest.
1-21 SECTION 2. Section 11.004, Utilities Code, is amended to read
1-22 as follows:
1-23 Sec. 11.004. DEFINITION OF UTILITY. In Subtitle A, "public
1-24 utility" or "utility" means:
2-1 (1) an electric utility, as that term is defined by
2-2 Section 31.002; [or]
2-3 (2) a public utility or utility, as those terms are
2-4 defined by Section 51.002; or
2-5 (3) a cable television company, as that term is
2-6 defined by Section 81.003.
2-7 SECTION 3. Section 14.008(a), Utilities Code, is amended to
2-8 read as follows:
2-9 (a) This title does not restrict the rights and powers of a
2-10 municipality to grant or refuse a franchise to use the streets and
2-11 alleys in the municipality or to make a statutory charge for that
2-12 use, provided that the franchise or statutory charge is consistent
2-13 with Subtitle D, as applicable.
2-14 SECTION 4. Sections 16.001(a) and (c), Utilities Code, are
2-15 amended to read as follows:
2-16 (a) To defray the expenses incurred in the administration of
2-17 this title, an assessment is imposed on each public utility, retail
2-18 electric provider, and electric cooperative within the jurisdiction
2-19 of the commission that serves the ultimate consumer, including each
2-20 interexchange telecommunications carrier and cable television
2-21 company.
2-22 (c) An interexchange telecommunications carrier or cable
2-23 television company that does not provide local exchange telephone
2-24 service may collect the fee imposed under this section as an
2-25 additional item separately stated on the customer bill as "utility
2-26 gross receipts assessment."
2-27 SECTION 5. Section 51.003, Utilities Code, is amended to read
3-1 as follows:
3-2 Sec. 51.003. APPLICABILITY. Except as otherwise expressly
3-3 provided by this title, this title does not apply to:
3-4 (1) a company that as its only form of business:
3-5 (A) is a telecommunications manager; or
3-6 (B) administers central office based or customer
3-7 based PBX-type sharing/resale arrangements;
3-8 (2) telegraph services;
3-9 (3) television or radio stations; or
3-10 (4) [community antenna television services; or]
3-11 [(5)] a provider of commercial mobile service as
3-12 defined by Section 332(d), Communications Act of 1934 (47 U.S.C.
3-13 Section 151 et seq.), Federal Communications Commission rules, and
3-14 the Omnibus Budget Reconciliation Act of 1993 (Public Law 103-66),
3-15 other than conventional rural radio-telephone services provided by
3-16 a wire-line telephone company under the Public Mobile Service rules
3-17 of the Federal Communications Commission (47 C.F.R. Part 22).
3-18 SECTION 6. Title 2, Utilities Code, is amended by adding
3-19 Subtitle D to read as follows:
3-20 SUBTITLE D. CABLE TELEVISION
3-21 CHAPTER 81. GENERAL PROVISIONS
3-22 Sec. 81.001. PURPOSE OF SUBTITLE. (a) Although cable
3-23 television serves in part as an extension of interstate
3-24 broadcasting, its operations involve significant state interests,
3-25 such as public rights-of-way, municipal franchising, and vital
3-26 business and community services. Although state oversight of cable
3-27 television operations is necessary, cable television operations
4-1 also must be protected from undue restraint and regulation so as to
4-2 ensure that cable television systems use optimum technology and
4-3 achieve maximum penetration in this state as rapidly as
4-4 economically and technically feasible.
4-5 (b) Both the public and the business community would benefit
4-6 if served by cable television companies that meet the needs of
4-7 producers and distributors of program and other communication
4-8 content services. The cable television industry, notwithstanding
4-9 its unique attributes, is part of an increasingly integrated
4-10 communications industry that is essential to this state's economic
4-11 growth and general welfare. Changes in technology and market
4-12 structure have increased the need to ensure high-quality service,
4-13 subscriber service, and a healthy marketplace in which increased
4-14 competition will foster new technologies, economic growth, and
4-15 opportunities for all residents of this state. Therefore, there is
4-16 a need for a state agency to:
4-17 (1) determine state communications policy;
4-18 (2) ensure that cable television companies provide
4-19 adequate, economical, and efficient service to their subscribers,
4-20 the municipalities within which the companies are franchised, and
4-21 other parties to the public interest;
4-22 (3) oversee the development of a cable television
4-23 industry responsive to community and public interest, in harmony
4-24 with federal regulations and statutes;
4-25 (4) oversee the development of the communications
4-26 industry as a whole; and
4-27 (5) encourage the endeavors of public and private
5-1 institutions, municipalities, associations, and organizations in
5-2 developing programming for the public interest.
5-3 (c) The commission is the agency best suited to oversee
5-4 development of the cable television industry in this state. The
5-5 commission shall:
5-6 (1) review the suitability of municipal practices for
5-7 franchising cable television companies to protect the public
5-8 interest;
5-9 (2) prescribe standards for cable television systems
5-10 and franchise practices;
5-11 (3) ensure communications interconnection and open
5-12 access;
5-13 (4) ensure channel availability for municipal
5-14 services, educational television, program diversity, local
5-15 expression, and other program and communications content services;
5-16 (5) provide consultant services to community
5-17 organizations and municipalities and franchise negotiations; and
5-18 (6) stimulate the development of diverse
5-19 instructional, educational, community interest, and public affairs
5-20 programming with full access to the programming by cable television
5-21 companies, educational broadcasters, and public and private
5-22 institutions operating closed-circuit television systems and
5-23 instructional television fixed services.
5-24 (d) It is the purpose of this subtitle to grant the
5-25 commission authority to make and enforce rules to protect
5-26 subscribers of cable television systems consistent with the public
5-27 interest.
6-1 Sec. 81.002. POLICY. It is the policy of this state to:
6-2 (1) encourage a fully competitive marketplace;
6-3 (2) promote diversity of cable television
6-4 transmissions;
6-5 (3) maintain a wide availability of high-quality cable
6-6 television services at affordable rates;
6-7 (4) ensure the interconnection of communications
6-8 technologies; and
6-9 (5) ensure open access of communications services for
6-10 all technologies, including Internet services.
6-11 Sec. 81.003. DEFINITIONS. In this subtitle:
6-12 (1) "Broadband" means possessing the capability to
6-13 transmit information at a rate of more than 200 kilobits a second
6-14 in both the upstream and downstream path to the end-use customer.
6-15 (2) "Cable television company" means a person that
6-16 owns, controls, operates, manages, or leases one or more cable
6-17 television systems within this state.
6-18 (3) "Cable television system" means a system that
6-19 operates for hire the service of:
6-20 (A) receiving and amplifying programs broadcast
6-21 by one or more television or radio stations or any other program
6-22 originated by a cable television company or by any other person;
6-23 and
6-24 (B) distributing the programs by wire, cable,
6-25 microwave, or other means, regardless of whether those means are
6-26 owned or leased, to persons in one or more municipalities who
6-27 subscribe to that service.
7-1 (4) "Franchise" means an authorization, privilege,
7-2 permit, or license granted by a municipality to construct, operate,
7-3 maintain, or manage a cable television system in the municipality.
7-4 (5) "High-speed" means possessing the capability to
7-5 transmit information at a rate of more than 200 kilobits a second
7-6 in either the upstream or downstream path to the end-use customer.
7-7 (6) "Internet" means the myriad of computer,
7-8 communications, and telecommunications facilities, including
7-9 equipment and operating software, that constitute the
7-10 interconnected worldwide networks that employ the Transmission
7-11 Control Protocol, the Internet Protocol, or any predecessor or
7-12 successor protocols to communicate information of all kinds.
7-13 (7) "Internet service provider" means a person who
7-14 provides a service that enables an end-use customer to access
7-15 content, information, electronic mail, or other services offered
7-16 over the Internet.
7-17 (8) "Person" has the meaning assigned by Section
7-18 311.005, Government Code.
7-19 (9) "Program" means a broadcast-type program, signal,
7-20 message, graphics, data, or communication content service.
7-21 (10) "Network" means a group of programs distributed,
7-22 packaged, promoted, or sold to subscribers as the offering of a
7-23 single entity, including a channel or station.
7-24 (11) "Subscriber" means a person who for a fee
7-25 receives the programming service of a cable television company or
7-26 system.
7-27 Sec. 81.004. APPLICATION OF SUBTITLE. (a) Notwithstanding
8-1 any other law, this subtitle applies to each cable television
8-2 company and cable television system in this state to the maximum
8-3 extent allowed by federal law.
8-4 (b) A person is considered subject to this subtitle if the
8-5 person possesses a franchise for a purpose contemplated by this
8-6 subtitle, regardless of whether the person acquires any property,
8-7 transacts any business, or exercises the franchise.
8-8 Sec. 81.005. MUNICIPALITIES. (a) This subtitle may not be
8-9 construed to limit the power of a municipality to impose or collect
8-10 a fee, tax, or charge on a cable television company.
8-11 (b) A municipality must comply with Section 86.004 before
8-12 the municipality may grant a franchise.
8-13 Sec. 81.006. CENSORSHIP PROHIBITED. (a) The commission may
8-14 not:
8-15 (1) prohibit or limit a program or a class or type of
8-16 program or otherwise censor the communications or signals
8-17 transmitted by a cable television company or over a cable
8-18 television system; or
8-19 (2) adopt a rule or condition that would interfere
8-20 with the right of free speech by means of cable television.
8-21 (b) A municipality may not prohibit or limit a program or
8-22 class or type of program or impose discriminatory or preferential
8-23 franchise fees in any manner that would tend to encourage or
8-24 discourage programming of a particular nature, directly or
8-25 indirectly.
8-26 (c) A cable television company may not prohibit or limit a
8-27 program or class or type of program presented over a leased channel
9-1 or any channel made available for public access or educational
9-2 purposes.
9-3 CHAPTER 82. COMMISSION JURISDICTION, POWERS, AND DUTIES
9-4 Sec. 82.001. COMMISSION JURISDICTION. (a) The commission
9-5 has exclusive original jurisdiction over cable television
9-6 companies, cable television services, and cable television systems.
9-7 (b) The commission has all jurisdiction necessary to carry
9-8 out the purpose of this subtitle and the public policy prescribed
9-9 by Sections 81.001 and 81.002 and to regulate cable television
9-10 companies under this subtitle.
9-11 Sec. 82.002. GENERAL COMMISSION DUTIES. The commission
9-12 shall:
9-13 (1) develop and maintain a statewide plan for
9-14 development of cable television services that prescribes objectives
9-15 the commission considers to be of regional and state concern;
9-16 (2) to the extent permitted by, and in accordance
9-17 with, applicable federal law, rules, and regulations:
9-18 (A) adopt rules governing franchises as provided
9-19 by Chapter 83; and
9-20 (B) prescribe standards for the construction and
9-21 operation of cable television systems as provided by Subchapter A,
9-22 Chapter 84;
9-23 (3) adopt rules and procedures to encourage and foster
9-24 interconnection and open access as provided by Sections 84.053 and
9-25 84.054;
9-26 (4) provide advice and technical assistance to
9-27 municipalities and community organizations in matters relating to
10-1 cable television franchises and services;
10-2 (5) establish minimum specifications for equipment,
10-3 service, and safety of cable television systems for use by
10-4 municipalities;
10-5 (6) review and act on applications for certificates of
10-6 confirmation as provided by Subchapter B, Chapter 83;
10-7 (7) represent the interests of the people of this
10-8 state before the Federal Communications Commission and other
10-9 appropriate federal agencies and make available information on
10-10 communications developments at the federal level;
10-11 (8) stimulate and encourage cooperative arrangements
10-12 among organizations, institutions, and municipalities in the
10-13 development of regional, educational, instructional, and public
10-14 affairs programming services;
10-15 (9) cooperate with municipalities to facilitate
10-16 undertaking of multiple community cable television systems;
10-17 (10) encourage the creation of public and community
10-18 groups to organize, obtain chartering when appropriate, and request
10-19 franchising to establish public, nonprofit, and not-for-profit
10-20 cable television operations; and
10-21 (11) perform any studies necessary to meet the
10-22 responsibilities and objectives of this subtitle.
10-23 Sec. 82.003. GENERAL COMMISSION POWERS. (a) The commission
10-24 has all power necessary or appropriate to carry out the purposes of
10-25 this subtitle.
10-26 (b) The commission may adopt rules necessary to enforce this
10-27 subtitle.
11-1 (c) The commission may require a cable television company to
11-2 maintain and file reports or other information the commission
11-3 considers necessary, including reports relating to system outages.
11-4 (d) The commission may require and receive from any agency
11-5 or political subdivision of this state any assistance or
11-6 information necessary to enable the commission to administer this
11-7 subtitle.
11-8 Sec. 82.004. CERTIFICATES AND REPORTING REQUIREMENTS. (a)
11-9 The commission may require a cable television company or system to
11-10 submit reports to the commission concerning any matter over which
11-11 the commission has authority under this subtitle.
11-12 (b) The commission by rule shall prescribe the certification
11-13 and reporting requirements for a cable television company or
11-14 system.
11-15 (c) Not later than October 1 of each year, a cable
11-16 television company that has obtained a certificate of confirmation
11-17 must file a report with the commission that states:
11-18 (1) the geographic area the company serves;
11-19 (2) the number of subscribers the company has
11-20 obtained;
11-21 (3) the maximum number of subscribers the company's
11-22 system can serve;
11-23 (4) the number of Internet service providers and
11-24 telecommunications companies that have interconnected with the
11-25 company's system;
11-26 (5) the rates the company charges for basic and
11-27 expanded service; and
12-1 (6) any other information the commission considers
12-2 necessary.
12-3 (d) Before January 15 of each odd-numbered year, the
12-4 commission shall report to the legislature on:
12-5 (1) the scope of competition in cable television
12-6 markets; and
12-7 (2) the effect of competition on subscribers.
12-8 (e) The report required by Subsection (d) shall include:
12-9 (1) an assessment of the effect of this subtitle on
12-10 the rates and availability of cable television services for
12-11 residential subscribers;
12-12 (2) an assessment of cable television companies'
12-13 compliance with the interconnection and open access requirements of
12-14 Sections 84.053 and 84.054;
12-15 (3) a summary of the complaints reported under Section
12-16 86.004;
12-17 (4) a summary of commission action taken during the
12-18 preceding two years relating to this subtitle, including actions
12-19 taken under Sections 83.151, 83.152, 84.002, 84.052, 84.053,
12-20 84.054, 85.004, and 86.004;
12-21 (5) a summary of the administrative penalties
12-22 administered by the commission under Chapter 87;
12-23 (6) a summary of the registration, capacity,
12-24 interconnection, and rate information collected under this section;
12-25 and
12-26 (7) recommendations for legislation the commission
12-27 determines is appropriate to promote the public interests
13-1 prescribed by this subtitle.
13-2 (f) A cable television company shall cooperate with the
13-3 commission as necessary for the commission to comply with this
13-4 section.
13-5 CHAPTER 83. FRANCHISE REQUIREMENTS AND CERTIFICATION OF
13-6 CONFIRMATION
13-7 SUBCHAPTER A. FRANCHISES
13-8 Sec. 83.001. FRANCHISE REQUIRED. (a) Notwithstanding any
13-9 other law, a cable television system may not operate in a
13-10 municipality or expand the area it serves in a municipality unless
13-11 the municipality grants the system a franchise to operate in that
13-12 area.
13-13 (b) Notwithstanding any municipal charter, ordinance, or
13-14 other law, a municipality may require that a cable television
13-15 system providing service within the municipality obtain a franchise
13-16 regardless of whether the company uses a public right-of-way within
13-17 the municipality.
13-18 (c) A municipality may not grant a franchise to a cable
13-19 television company until the municipality complies with Section
13-20 86.004.
13-21 Sec. 83.002. FRANCHISE REQUIREMENTS. (a) A municipality may
13-22 not adopt a franchise provision or requirement that conflicts with:
13-23 (1) this subtitle;
13-24 (2) a rule, procedure, or policy adopted by the
13-25 commission under this subtitle; or
13-26 (3) federal law.
13-27 (b) This subtitle may not be construed to prevent a
14-1 municipality from adopting franchise requirements that exceed the
14-2 requirements prescribed by the commission, unless the requirement
14-3 is inconsistent with:
14-4 (1) this subtitle;
14-5 (2) a rule, procedure, or policy adopted by the
14-6 commission under this subtitle; or
14-7 (3) federal law.
14-8 Sec. 83.003. PRACTICES AND PROCEDURES OF MUNICIPALITIES. (a)
14-9 To the extent permitted by, and in accordance with, applicable
14-10 federal law, rules, and regulations, the commission by rule shall
14-11 prescribe standards for procedures and practices that a
14-12 municipality must follow in granting a franchise, including
14-13 standards the commission considers necessary or appropriate to:
14-14 (1) ensure public participation;
14-15 (2) protect the public interest; and
14-16 (3) promote competition at the municipal level among
14-17 cable television systems.
14-18 (b) The rules adopted under Subsection (a) must require
14-19 that a municipality:
14-20 (1) issue a public invitation to compete or bid for
14-21 the franchise;
14-22 (2) hold a public hearing as required by Section
14-23 83.006; and
14-24 (3) publish a written report describing the reasons
14-25 why the municipality granted a franchise and make the report
14-26 available to the public.
14-27 (c) A municipality may not grant an exclusive franchise.
15-1 Sec. 83.004. CONTENTS OF FRANCHISES. To the extent permitted
15-2 by, and in accordance with, applicable federal law, rules, and
15-3 regulations, the commission by rule shall prescribe minimum
15-4 standards for the terms of a franchise agreement the commission
15-5 considers necessary or appropriate to protect the public interest,
15-6 including terms relating to:
15-7 (1) the maximum initial term of the agreement and any
15-8 renewal terms of the agreement;
15-9 (2) the minimum channel capacity of the cable
15-10 television system;
15-11 (3) access to, and facilities to make use of, channels
15-12 for education and public service programs; and
15-13 (4) standards necessary or appropriate to protect the
15-14 interests of viewers of free broadcast television and the public
15-15 generally that prohibit or limit cable television companies from
15-16 prohibiting or entering into agreements prohibiting the sale or
15-17 other transfer of rights for the simultaneous or subsequent
15-18 transmission over free broadcast television of any program
15-19 originated or transmitted over cable television.
15-20 Sec. 83.005. STANDARDS RELATING TO ABILITY. The commission
15-21 by rule shall prescribe standards by which a municipality may
15-22 determine whether an applicant possesses the technical ability,
15-23 financial ability, good character, and other qualifications
15-24 necessary to operate a cable television system in the public
15-25 interest.
15-26 Sec. 83.006. NOTICE AND PUBLIC HEARING REQUIRED. A
15-27 municipality may grant a franchise only after providing reasonable
16-1 notice to the public and the commission and holding a public
16-2 hearing at which:
16-3 (1) each applicant and proposal is examined; and
16-4 (2) members of the public and affected persons are
16-5 afforded a reasonable opportunity to express their views.
16-6 Sec. 83.007. RECORDS AND AGREEMENTS. (a) A franchise
16-7 application, a franchise agreement, and all related documents
16-8 accepted by the municipality in relation to a franchise are public
16-9 information under Chapter 552, Government Code.
16-10 (b) A cable television company that has reached a franchise
16-11 agreement with a municipality shall publish and post the entire
16-12 text of the agreement on the company's web page. The company shall
16-13 provide a link to the agreement located in a conspicuous place on
16-14 the company's web page.
16-15 Sec. 83.008. NOTICE TO SUBSCRIBERS OF AVAILABILITY OF
16-16 AGREEMENT. (a) A cable television company shall provide written
16-17 notice to its subscribers of the availability of the franchise
16-18 agreement on the company's web page as prescribed by Section
16-19 83.007.
16-20 (b) The notice must be printed on the face of each monthly
16-21 bill sent to subscribers in prominent type and include the
16-22 company's website URL address.
16-23 (Sections 83.009-83.050 reserved for expansion)
16-24 SUBCHAPTER B. CERTIFICATE OF CONFIRMATION
16-25 Sec. 83.051. CERTIFICATE OF CONFIRMATION REQUIRED. A person
16-26 may not exercise a franchise, and a franchise is not effective,
16-27 until the commission has confirmed the franchise.
17-1 Sec. 83.052. APPLICATION FOR CERTIFICATE OF CONFIRMATION. A
17-2 person who wants to exercise a franchise must file with the
17-3 commission an application for a certificate of confirmation as
17-4 prescribed by the commission. The application must be accompanied
17-5 by proof of service to the municipality that granted the franchise.
17-6 Sec. 83.053. ISSUANCE OF CERTIFICATE OF CONFIRMATION. (a)
17-7 The commission shall issue a certificate of confirmation to an
17-8 applicant unless the commission determines that the applicant, the
17-9 proposed cable television system, or the proposed franchise:
17-10 (1) does not comply with this subtitle or rules
17-11 adopted by the commission under this subtitle;
17-12 (2) would be in violation of any other law or of any
17-13 other rule adopted by the commission; or
17-14 (3) would not be in the public interest.
17-15 (b) The commission may issue a certificate of confirmation
17-16 contingent on compliance with standards or conditions prescribed by
17-17 the commission under this subtitle.
17-18 (Sections 83.054-83.100 reserved for expansion)
17-19 SUBCHAPTER C. TRANSFER, RENEWAL, OR AMENDMENT OF FRANCHISE
17-20 Sec. 83.101. TRANSFER DEFINED. In this subchapter, a merger
17-21 or consolidation of two or more cable television companies is
17-22 considered to be a transfer of the franchises or certificates
17-23 granted to those companies.
17-24 Sec. 83.102. TRANSFER, RENEWAL, OR AMENDMENT OF FRANCHISE OR
17-25 FACILITIES. (a) A person may not transfer, renew, or amend a
17-26 franchise, transfer control of a franchise or certificate of
17-27 confirmation, or transfer facilities constituting a significant
18-1 part of a cable television system without the prior approval of the
18-2 commission.
18-3 (b) Approval by the commission is in addition to any
18-4 municipal approval required under the franchise or by law.
18-5 Sec. 83.103. APPLICATION FOR APPROVAL. A person who wants to
18-6 receive commission approval under Section 83.102 must file an
18-7 application for approval in the manner prescribed by the
18-8 commission. The application must be accompanied by proof of
18-9 service to each municipality, if any, that granted an affected
18-10 franchise.
18-11 Sec. 83.104. APPROVAL. (a) The commission shall approve the
18-12 application unless the commission determines that:
18-13 (1) the applicant, the proposed transferee, or the
18-14 cable television system is not in compliance with this subtitle or
18-15 rules adopted by the commission under this subtitle;
18-16 (2) approval would be in violation of any other law or
18-17 any other rule adopted by the commission; or
18-18 (3) approval would not be in the public interest.
18-19 (b) A failure to conform to the standards established by the
18-20 commission does not preclude approval of an application if the
18-21 commission determines that approval would serve the public
18-22 interest.
18-23 (c) The commission may approve the application contingent on
18-24 compliance with standards or conditions prescribed by the
18-25 commission under this subtitle.
18-26 (d) Approval of a transfer, renewal, or amendment under this
18-27 subchapter does not preclude invalidation of a franchise illegally
19-1 obtained.
19-2 (Sections 83.105-83.150 reserved for expansion)
19-3 SUBCHAPTER D. TERMINATION, SUSPENSION, OR REVOCATION OF
19-4 FRANCHISE OR CERTIFICATE; ABANDONMENT OF SERVICE
19-5 Sec. 83.151. SUSPENSION OF FRANCHISE OR CERTIFICATE. The
19-6 commission may suspend a cable television company's franchise and
19-7 certificate of confirmation for failure to comply with this
19-8 subtitle or an order issued or rule adopted by the commission
19-9 under this subtitle.
19-10 Sec. 83.152. REVOCATION OF FRANCHISE AND CERTIFICATE. (a) A
19-11 franchise terminates in accordance with its terms unless the
19-12 commission issues an order revoking the franchise and related
19-13 certificate of confirmation in accordance with Subsection (b).
19-14 (b) The commission may revoke a cable television company's
19-15 franchise and certificate of confirmation only if the commission
19-16 determines that the company:
19-17 (1) has:
19-18 (A) committed a material breach of its
19-19 franchise, an applicable provision of this subtitle, or a rule
19-20 adopted by the commission under this subtitle; and
19-21 (B) failed, without reasonable justification, to
19-22 cure the material breach not later than the 61st day after the date
19-23 the company received written notice of the material breach from the
19-24 commission; or
19-25 (2) has been adjudicated bankrupt or has filed a
19-26 voluntary petition for bankruptcy or reorganization or for an order
19-27 protecting its assets from the claims of creditors and termination
20-1 of the franchise and certificate of confirmation is in the best
20-2 interest of the public.
20-3 Sec. 83.153. DISPOSITION OF FACILITIES ON TERMINATION OR
20-4 REVOCATION. (a) On termination or revocation of a franchise, a
20-5 cable television company shall dispose of the company's facilities
20-6 in accordance with the franchise or related certificate of
20-7 confirmation.
20-8 (b) The commission may require a cable television company to
20-9 remove the company's facilities within a specified period if, on
20-10 its own motion or on complaint by an affected person, the
20-11 commission finds that the continued presence of the facilities in a
20-12 public thoroughfare would pose a nuisance to the municipality or
20-13 the municipality's residents.
20-14 (c) A cable television company may abandon the company's
20-15 facilities unless abandonment is prohibited by commission order or
20-16 the franchise or related certificate of confirmation.
20-17 Sec. 83.154. ABANDONMENT OF SERVICE. (a) Notwithstanding
20-18 any other law or a provision of the franchise, a cable television
20-19 company may not abandon any service or any portion of service the
20-20 company agrees to provide under the franchise before the 61st day
20-21 after the date the company provides written notice of its intent
20-22 to:
20-23 (1) the commission;
20-24 (2) the municipality that granted the franchise; and
20-25 (3) each municipality the company serves.
20-26 (b) If the cable television company's franchise prohibits
20-27 the company from abandoning service, the company may not abandon
21-1 the service unless the company receives the written consent of the
21-2 commission and the municipality that granted the franchise. In
21-3 granting the consent, the commission may impose any terms or
21-4 requirements the commission considers necessary to protect the
21-5 public interest.
21-6 CHAPTER 84. DUTIES OF CERTIFICATE HOLDERS
21-7 SUBCHAPTER A. CONSTRUCTION OF SYSTEMS
21-8 Sec. 84.001. STANDARDS. (a) The commission by rule shall
21-9 prescribe standards relating to the construction of cable
21-10 television systems that are designed to promote:
21-11 (1) safe, adequate, and reliable service to
21-12 subscribers;
21-13 (2) construction and operation that is consistent with
21-14 the most advanced state of the art, including the ability to
21-15 provide high-speed or broadband service to subscribers;
21-16 (3) construction schedules that provide for rapid
21-17 deployment and penetration;
21-18 (4) construction of systems with the greatest channel
21-19 capacity;
21-20 (5) construction of facilities that provide for:
21-21 (A) local program origination;
21-22 (B) service in areas that conform to various
21-23 community interests;
21-24 (C) the technical capacity for interconnection
21-25 with other systems within regions as established in the
21-26 commission's statewide plan; and
21-27 (D) signal transmission from subscribers to the
22-1 cable television company or to other points;
22-2 (6) the prompt handling of inquiries, complaints, and
22-3 requests for repairs; and
22-4 (7) the interconnection of communications technologies
22-5 and services, including the interconnection required by Section
22-6 84.053.
22-7 (b) A cable television system shall comply with the
22-8 construction standards prescribed by the commission.
22-9 Sec. 84.002. ORDER RELATING TO CONSTRUCTION. (a) The
22-10 commission, on its own motion or on complaint by an affected
22-11 person, may order a cable television company to construct, operate,
22-12 or extend the company's system, regardless of the economic
22-13 feasibility, if the commission finds that:
22-14 (1) the construction or operation of a cable
22-15 television system has been unreasonably delayed; or
22-16 (2) the extension of service to a person or area
22-17 within a cable television company's territory has been unreasonably
22-18 withheld.
22-19 (b) The commission shall order the construction, operation,
22-20 or extension under Subsection (a) on any terms the commission
22-21 considers reasonable and in the public interest and may
22-22 specifically require the cable television company to comply with
22-23 Section 84.053.
22-24 (Sections 84.003-84.050 reserved for expansion)
22-25 SUBCHAPTER B. PROVISION OF SERVICE
22-26 Sec. 84.051. DEFINITION. In this subchapter, "communications
22-27 entity" means a person or system that provides a service to
23-1 communicate any type of information by means of any technology. The
23-2 term includes telecommunications carriers, cable television
23-3 companies, cable television systems, telecommunications enhanced
23-4 service providers, and Internet service providers. The term does
23-5 not include a person engaged in a private mobile service, as that
23-6 term is defined by 47 U.S.C. Section 332, as amended.
23-7 Sec. 84.052. ADEQUATE SERVICE. (a) A cable television
23-8 company shall provide safe, adequate, and reliable service in
23-9 accordance with applicable laws and rules and franchise
23-10 requirements.
23-11 (b) The commission, on its own motion or on complaint by an
23-12 affected person, may order a cable television company to comply
23-13 with the service requirements and obligations prescribed by this
23-14 subtitle, commission rules, or the franchise if the commission
23-15 determines that a cable television company is not meeting those
23-16 requirements or obligations.
23-17 (c) The commission may order compliance on any terms the
23-18 commission considers reasonable and in the public interest.
23-19 Sec. 84.053. INTERCONNECTION. (a) In this section,
23-20 "telecommunications utility" has the meaning assigned by Section
23-21 51.002.
23-22 (b) To promote the provision of high-speed and broadband
23-23 services to all residents of this state, each cable television
23-24 company in this state has a duty to interconnect with
23-25 telecommunications utilities and other communications entities as
23-26 the commission considers to be in the public interest.
23-27 (c) The commission, on its own motion or on complaint by an
24-1 affected person, may order a cable television company to
24-2 interconnect the company's cable television systems and facilities
24-3 or coordinate the operation of those systems and facilities. The
24-4 commission may include in the order any reasonable terms the
24-5 commission determines will best promote the public interest.
24-6 Sec. 84.054. OPEN ACCESS. (a) In this section, "broadband
24-7 Internet access transport services" means the broadband
24-8 transmission of information between an end-user and an Internet
24-9 service provider's point of interconnection with the broadband
24-10 Internet access transport provider's facilities.
24-11 (b) Each cable television company in this state has a duty
24-12 to provide any communications entity access to the company's
24-13 broadband Internet access transport services, unbundled from the
24-14 provision of content, on rates and terms that are at least as
24-15 favorable as those on which the company provides that access to
24-16 itself, to its affiliates, or to any other person.
24-17 (c) The commission, on its own motion or on complaint by an
24-18 affected person, may order, set, and determine rates and terms of
24-19 the access that the commission determines will best promote the
24-20 public interest.
24-21 Sec. 84.055. PROGRAMMING ADVERTISEMENTS. (a) A cable
24-22 television company shall maintain copies of all advertisements,
24-23 lists, or other notifications regarding programming sent to or made
24-24 available to the public.
24-25 (b) A cable television company shall maintain the copies for
24-26 at least three years and shall make them available to the
24-27 commission.
25-1 Sec. 84.056. NOTICE. A cable television company shall
25-2 provide clear, uniform, and understandable information to the
25-3 public as prescribed by this subtitle and the commission.
25-4 CHAPTER 85. RATES
25-5 Sec. 85.001. FRANCHISE GOVERNS. (a) Except as otherwise
25-6 provided by this chapter, other state law, or federal law, rules,
25-7 or regulations, a cable television company shall charge the rates
25-8 specified by the franchise.
25-9 (b) The franchise may establish or provide for the
25-10 establishment of:
25-11 (1) reasonable classifications of service and
25-12 categories of subscribers; and
25-13 (2) different rates for different services or for
25-14 subscribers in different categories.
25-15 (c) The rates specified by a franchise may not be changed
25-16 except by amendment of the franchise.
25-17 Sec. 85.002. TERM OF RATES. (a) Notwithstanding Section
25-18 85.001 or any other provision of law, a rate provision in a
25-19 franchise may not apply in a municipality after the fifth
25-20 anniversary of the date the municipality grants the franchise. A
25-21 rate provision in a renewed franchise may not apply in a
25-22 municipality after the fifth anniversary of the date the
25-23 municipality renews the franchise.
25-24 (b) A franchise may not provide for more than one rate for
25-25 basic or expanded service.
25-26 (c) A franchise may not provide for an increase in rates
25-27 during the term of the franchise.
26-1 Sec. 85.003. DISCRIMINATORY OR PREFERENTIAL RATES. (a)
26-2 Notwithstanding Section 85.001, a rate that the commission
26-3 determines is discriminatory or preferential is void. The
26-4 commission may not determine that a rate or free service provided
26-5 to a government or an educational or charitable institution is
26-6 discriminatory or preferential.
26-7 (b) If the commission finds that a rate is discriminatory or
26-8 preferential, the commission may require the municipality and the
26-9 cable television company to provide for new rates that are not
26-10 discriminatory or preferential.
26-11 Sec. 85.004. RATES SET BY COMMISSION. (a) The commission
26-12 may prescribe rates for cable television service if:
26-13 (1) the commission determines that the rates are
26-14 discriminatory or preferential; and
26-15 (2) the municipality and the cable television company,
26-16 after reasonable opportunity, have not provided for new rates that
26-17 are not discriminatory or preferential.
26-18 (b) The commission may reduce the rates of a cable
26-19 television company if:
26-20 (1) the commission determines that the company is in
26-21 violation of an order issued by the commission requiring adequate
26-22 service; and
26-23 (2) the municipality and the cable television company,
26-24 after reasonable opportunity, have not provided for new rates
26-25 reduced to reflect the inadequate service.
26-26 (c) The commission may restore the rates that were reduced
26-27 under Subsection (b) if the commission determines that the cable
27-1 television company has substantially remedied the deficiencies.
27-2 (d) If, on complaint by an affected person and after
27-3 reasonable opportunity for negotiation between the municipality and
27-4 the cable television company, the commission determines that a
27-5 cable television company's rates were not established in accordance
27-6 with the terms of the company's franchise, the commission shall set
27-7 the company's rates at a level comparable to rates set in
27-8 comparable franchises requiring comparable service for comparable
27-9 service areas.
27-10 (e) A municipality and a cable television company may
27-11 request that the commission set applicable rates. The commission
27-12 shall set the rates at a level comparable to rates set in cable
27-13 television franchises for comparable service in comparable service
27-14 areas.
27-15 Sec. 85.005. EFFECT OF FEDERAL LAW. This chapter applies to
27-16 and governs the rates of a cable television company only to the
27-17 extent allowed under federal law, rules, or regulations.
27-18 CHAPTER 86. SUBSCRIBER PROTECTION
27-19 SUBCHAPTER A. GENERAL PROVISIONS
27-20 Sec. 86.001. SUBSCRIBER PROTECTION POLICY. (a) The
27-21 legislature finds that new developments in the cable and
27-22 communications markets make it essential that subscribers have
27-23 safeguards against fraudulent, unfair, misleading, deceptive, or
27-24 anticompetitive business practices and against businesses that do
27-25 not have the technical and financial resources to provide adequate
27-26 service. The purpose of this section is to establish subscriber
27-27 protection standards and confer on the commission authority to
28-1 adopt and enforce rules to protect subscribers from fraudulent,
28-2 unfair, misleading, deceptive, or anticompetitive practices.
28-3 (b) This subtitle does not limit the constitutional,
28-4 statutory, and common-law authority of the office of the attorney
28-5 general or any other person.
28-6 Sec. 86.002. RULES. (a) The commission shall adopt rules
28-7 that ensure that retail subscriber protections are established that
28-8 entitle a subscriber of a cable television company to:
28-9 (1) safe, reliable, and reasonably priced cable
28-10 television service, including protection against service
28-11 disconnections and interruptions;
28-12 (2) privacy of subscriber consumption and credit
28-13 information;
28-14 (3) have all cable television services on a single
28-15 bill presented in a clear format and in language that is readily
28-16 understandable;
28-17 (4) protection from discrimination on the basis of
28-18 race, color, sex, nationality, religion, or marital status;
28-19 (5) information in English and Spanish and any other
28-20 language as necessary concerning rates and key terms or service in
28-21 a standard format that will permit comparisons between price and
28-22 service offerings;
28-23 (6) deferred payment plans;
28-24 (7) be protected from fraudulent, unfair, misleading,
28-25 deceptive, or anticompetitive practices, including protection from
28-26 being billed for services that were not authorized or provided;
28-27 (8) have an impartial and prompt resolution of
29-1 disputes with the cable television company; and
29-2 (9) other information or protections necessary to
29-3 ensure high-quality service.
29-4 (b) In addition to the rules required by Subsection (a), the
29-5 commission shall adopt rules prescribing the maximum amounts
29-6 subscribers of cable television companies may be charged for
29-7 deposits, service termination, reconnection of service, and late
29-8 payment.
29-9 (c) The commission shall require a cable television company
29-10 to comply with this section as a condition to receive a certificate
29-11 of confirmation.
29-12 (d) If, on its own motion or on complaint by an affected
29-13 person, the commission determines that a cable television company
29-14 has not complied with this section, the commission shall order the
29-15 company to comply and may impose any penalty provided by this
29-16 subtitle or Chapter 15 the commission considers appropriate.
29-17 Sec. 86.003. SUBSCRIBER AWARENESS. The commission shall
29-18 promote public awareness of and provide subscribers with necessary
29-19 information relating to the cable television market and ensure that
29-20 subscribers have an adequate understanding of their rights.
29-21 Sec. 86.004. SUBSCRIBER COMPLAINTS. (a) The commission
29-22 shall adopt and enforce rules necessary to carry out this section.
29-23 (b) Each municipality entering into a franchise agreement
29-24 with a cable television company shall establish and develop a
29-25 subscriber complaint department consistent with commission rules
29-26 and standards.
29-27 (c) A municipal subscriber complaint department shall
30-1 operate a working local telephone number answered by a live
30-2 operator between the hours of 8 a.m. and 6 p.m. A cable television
30-3 company complaint department shall operate a working toll-free
30-4 telephone number separate from any other number used by the company
30-5 and answered by a live operator at all times.
30-6 (d) A municipal or cable television company complaint
30-7 department that receives a complaint shall document the complaint
30-8 and forward the complaint to the commission in a manner prescribed
30-9 by the commission.
30-10 (e) The phone numbers of the municipal and cable television
30-11 company subscriber complaint departments shall be printed in a
30-12 conspicuous place, in at least 12-point type, on each cable
30-13 television bill.
30-14 Sec. 86.005. LANDLORD-TENANT RELATIONSHIP. (a) A landlord
30-15 may not interfere with the installation of cable television
30-16 facilities on the landlord's property or premises, except that a
30-17 landlord may require that:
30-18 (1) the installation of cable television facilities
30-19 conform to such reasonable conditions as are necessary to protect
30-20 the safety, functioning, and appearance of the premises, and the
30-21 convenience and well-being of other tenants;
30-22 (2) the cable television company or the tenant, or
30-23 both, bear the entire cost of the installation, operation, or
30-24 removal of the facilities; and
30-25 (3) the cable television company agree to indemnify
30-26 the landlord for any damage caused by the installation, operation,
30-27 or removal of the facilities.
31-1 (b) A landlord may not demand or accept:
31-2 (1) any form of payment from a tenant for permitting
31-3 cable television service on or within the landlord's property or
31-4 premises; or
31-5 (2) any amount in excess of what the commission shall,
31-6 by regulation, determine to be reasonable, from a cable television
31-7 company in exchange for permitting cable television service on or
31-8 within the landlord's property or premises.
31-9 (c) A landlord may not discriminate, in rental or lease
31-10 charges or otherwise, between tenants who receive cable television
31-11 service and those who do not.
31-12 (d) A cable television company may not enter into an
31-13 agreement with the owner, lessee, or person controlling or managing
31-14 a building served by a cable television company, or perform any
31-15 action or permit any act, that would have the effect, directly or
31-16 indirectly, of diminishing or interfering with the rights of a
31-17 tenant or other occupant of a building to use or have available
31-18 master or individual antenna equipment.
31-19 Sec. 86.006. SUBSCRIBER PRIVACY. A cable television company
31-20 or system may only use subscriber-identifying information for the
31-21 business purpose for which the information was first obtained. A
31-22 cable television company or system may not share, sell, or lease
31-23 subscriber-identifying information without the subscriber's written
31-24 affirmative consent.
31-25 Sec. 86.007. SUBSCRIBER LOCKING PROGRAM CONTROL DEVICES.
31-26 (a) To the extent technologically feasible, a cable television
31-27 company shall offer to each subscriber a locking program control
32-1 device that enables the subscriber to limit the reception in the
32-2 subscriber's residence of any channel that displays public access
32-3 programs or for which a specific, optional premium charge is
32-4 imposed.
32-5 (b) A cable television company is required to install a
32-6 locking program control device only if the subscriber requests
32-7 installation.
32-8 (c) The cable television company may charge a subscriber who
32-9 requests a locking program control device an amount equal to the
32-10 actual cost to the company for the manufacture, purchase, and
32-11 installation of the device. The company may impose the charge as a
32-12 one-time charge or in installments.
32-13 (d) A cable television company shall annually notify each
32-14 subscriber in writing of the availability of the locking program
32-15 control device. The written notice shall be printed in prominent
32-16 type and include information concerning the cost to the subscriber.
32-17 The company may include the notice with other materials distributed
32-18 by the company. In addition to the annual notice required by this
32-19 subsection, the company shall provide the notice to a new
32-20 subscriber at the time of initial subscription and to a subscriber
32-21 who requests a change in service.
32-22 (Sections 86.008-86.050 reserved for expansion)
32-23 SUBCHAPTER B. NOTICE TO SUBSCRIBERS
32-24 Sec. 86.051. GENERAL NOTICE TO SUBSCRIBERS. The commission
32-25 shall adopt and enforce rules to require a cable television company
32-26 to provide to subscribers clear, uniform, and understandable
32-27 information about rates, terms, services, subscriber rights, and
33-1 other necessary information as determined by the commission.
33-2 Sec. 86.052. REQUESTS FOR INFORMATION. (a) A cable
33-3 television company shall provide to each person who requests
33-4 information concerning rates, programming, service charges, or
33-5 procedures, or who requests any change of service, a written
33-6 description of the programs and services offered and of the rates
33-7 and charges relating to those programs and services. The
33-8 description must be materially accurate as of the first day of the
33-9 preceding month.
33-10 (b) If a person requests information in person from a cable
33-11 television subscriber service representative or salesperson, the
33-12 representative or salesperson shall immediately give the person a
33-13 copy of the written description. If a person requests information
33-14 by telephone, the company shall send the written description to
33-15 the subscriber by first class mail not later than the 11th business
33-16 day after the date of the request.
33-17 (c) A cable television company shall provide each subscriber
33-18 service representative and each salesperson with copies of the
33-19 written description required by this section and shall advise them
33-20 of the requirements of this section.
33-21 Sec. 86.053. NOTICE TO SUBSCRIBERS. (a) A cable television
33-22 company shall provide to a subscriber at the time of initial
33-23 subscription and at least annually after that date a written
33-24 description of all programming and other services offered on the
33-25 cable television system and of the rates and charges relating to
33-26 the programming and other services. The description must be
33-27 materially accurate as of the first day of the preceding month,
34-1 except that for new subscribers, the cable television company shall
34-2 provide the most recent notices required by this section that have
34-3 been provided to subscribers as of the date of the initial
34-4 subscription.
34-5 (b) A notice required by this section shall contain a
34-6 statement, adopted by the commission, of significant rights
34-7 accorded the subscriber under this subtitle and any other law,
34-8 including rules adopted by the commission.
34-9 (c) The commission shall require a cable television company
34-10 that fails to comply with this section to give each subscriber who
34-11 did not receive the required notice a full rebate of all charges
34-12 and deposits, including installation charges and any other one-time
34-13 charges.
34-14 (Sections 86.054-86.100 reserved for expansion)
34-15 SUBCHAPTER C. NETWORK OR PROGRAMMING CHANGE OR AVAILABILITY
34-16 Sec. 86.101. DEFINITIONS. In this subchapter:
34-17 (1) "Downgrade" means a change in service initiated by
34-18 the subscriber to a less-expensive service tier than the tier to
34-19 which the subscriber was previously subscribed.
34-20 (2) "Network change" means the removal of a network
34-21 from a service tier regardless of whether the network is added to
34-22 another tier. The term includes a substantial alteration of the
34-23 character of a network by a cable television company or an
34-24 affiliate the company controls. The term does not include the
34-25 deletion of a network that is:
34-26 (A) added to a service tier for promotional
34-27 purposes if that purpose is clearly disclosed to the subscriber;
35-1 and
35-2 (B) deleted not later than the 31st day after
35-3 the date it is added.
35-4 (3) "Service tier" means a category of cable
35-5 television services or other services provided by a cable
35-6 television company for which a rate or fee is charged by the cable
35-7 television company, including:
35-8 (A) basic services;
35-9 (B) premium networks or services;
35-10 (C) recurring pay-per-view services; and
35-11 (D) other categories of cable services for which
35-12 there are additional charges.
35-13 (4) "Significant programming change" means the removal
35-14 or alteration of recurring programming that materially changes the
35-15 quality or level of programming on a network. The term does not
35-16 include the deletion of a program that is:
35-17 (A) mandated by regulations adopted by the
35-18 Federal Communications Commission; or
35-19 (B) distributed by the cable television company
35-20 instead of a program deleted in accordance with regulations adopted
35-21 by the Federal Communications Commission.
35-22 Sec. 86.102. NOTICE TO COMMISSION OF NETWORK CHANGE OR
35-23 SIGNIFICANT PROGRAMMING CHANGE. A cable television company shall
35-24 notify the commission of any network change or significant
35-25 programming change not later than the earlier of:
35-26 (1) the 45th day before the date the network change
35-27 or significant programming change is scheduled to occur; or
36-1 (2) the fifth business day after the date the cable
36-2 television company first knows of the change.
36-3 Sec. 86.103. NOTICE TO SUBSCRIBERS OF NETWORK CHANGES AND
36-4 SIGNIFICANT PROGRAMMING CHANGES. (a) A cable television company
36-5 shall notify each subscriber who receives a network that will be
36-6 subject to a significant programming change or is affected by a
36-7 network change or significant programming change of that change not
36-8 later than the earlier of:
36-9 (1) the 30th day before the date the change is
36-10 scheduled to occur; or
36-11 (2) the 10th day after the cable television company
36-12 first knows of the change.
36-13 (b) The cable television company shall provide the notice
36-14 required by Subsection (a) by promptly displaying a written
36-15 on-screen visual message on the affected television program channel
36-16 or channels, and on the program listing channel of the cable
36-17 television system, if any, at least once each hour for not less
36-18 than 30 days and by:
36-19 (1) mailing a separate written notice to the
36-20 subscriber's billing address of record;
36-21 (2) including a written notation printed on the
36-22 subscriber's regular billing statement; or
36-23 (3) including a separate written notice with the
36-24 subscriber's regular billing statement.
36-25 (c) A cable television company is not required to provide
36-26 notice under this section if the commission issues a written order
36-27 stating that the change is not a network change or is not a
37-1 significant programming change. The commission may issue the order
37-2 on application of a cable television company. The commission by
37-3 rule shall prescribe standards relating to whether a change is a
37-4 network change or significant programming change.
37-5 (d) The commission, on its own motion or on complaint by an
37-6 affected person, may order a cable television company to send a
37-7 notice to subscribers in a particular manner as the commission
37-8 considers appropriate. The commission shall require that the
37-9 notice be sent only if the commission finds that the subscribers
37-10 are receiving a network that will be subject to a significant
37-11 programming change or will be affected by a network change or
37-12 significant programming change.
37-13 (e) A notice required by this section must include a
37-14 description of the subscriber's rights.
37-15 Sec. 86.104. FAILURE TO GIVE SUBSCRIBER NOTICE OF NETWORK OR
37-16 SIGNIFICANT PROGRAMMING CHANGE. (a) If a cable television company
37-17 fails to comply with the notice requirements prescribed by Section
37-18 86.103, an affected subscriber may downgrade or terminate the
37-19 subscriber's service without charge at any time before the 31st
37-20 day after the date proper notice of the change is sent to the
37-21 subscriber.
37-22 (b) The cable television company shall consider the
37-23 downgrade or termination to take effect for billing purposes on the
37-24 date the network or significant programming change occurs.
37-25 Sec. 86.105. REMOVAL OF SIGNIFICANTLY PROMOTED PROGRAMMING.
37-26 (a) This section applies to a cable television company that
37-27 promotes repeatedly, and in a significant manner, the availability
38-1 of a network on the company's basic service tier and within a
38-2 period of six months after the last date of that promotion makes a
38-3 network change by moving the promoted network from the basic
38-4 service tier to a more expensive service tier.
38-5 (b) During the 90-day period immediately following a network
38-6 change described by Subsection (a), the cable television company
38-7 shall provide to a potential subscriber oral and written notice
38-8 that the network is not available or is not offered at the service
38-9 tier at which it was previously available or was advertised as
38-10 being available. The company shall provide the notice before a
38-11 person commits to subscribe and before installation of service.
38-12 (c) An affected subscriber who began the person's
38-13 subscription to the basic service tier within the 90-day period
38-14 preceding the final day of the promotion of the network is entitled
38-15 to:
38-16 (1) a refund of all installation, upgrade, and other
38-17 one-time charges imposed on the subscriber during the six-month
38-18 period preceding the date of the network change, on request by the
38-19 subscriber for termination of service; or
38-20 (2) an upgrade at no charge to the premium service
38-21 tier that carries the network, and to receive the premium service
38-22 tier that carries the network at no charge until the 120th day
38-23 after the last day of the promotion.
38-24 (d) A subscriber must request a termination of service or an
38-25 upgrade under Subsection (c) not later than the 45th day after the
38-26 date the subscriber is notified of the change in accordance with
38-27 this section.
39-1 (e) The commission by rule shall prescribe the circumstances
39-2 that constitute when a cable television company "promotes
39-3 repeatedly, and in a significant manner, the availability of a
39-4 network" for purposes of this section.
39-5 Sec. 86.106. FAILURE TO MAKE SIGNIFICANTLY PROMOTED
39-6 PROGRAMMING AVAILABLE. (a) This section applies to a cable
39-7 television company that promotes repeatedly, and in a significant
39-8 manner, the availability on the basic service tier of a network
39-9 that is subject to the notice requirements of this subchapter and,
39-10 not later than the 120th day after the last day of the promotion,
39-11 fails to make the network available as promoted even though the
39-12 network continues to be reasonably available to the cable
39-13 television company. The commission by rule shall prescribe the
39-14 circumstances that constitute when a cable television company
39-15 "promotes repeatedly, and in a significant manner, the availability
39-16 of a network" and when a network "continues to be reasonably
39-17 available" for purposes of this section.
39-18 (b) During the 45-day period after the cable television
39-19 company provides the notification required by this subchapter, the
39-20 company shall offer to each affected subscriber:
39-21 (1) a termination of service and the refund of all
39-22 installation, upgrade, and other one-time charges imposed on the
39-23 subscriber during the six-month period preceding the date the
39-24 network becomes unavailable; or
39-25 (2) the continuation of service and, on request, a
39-26 credit in an amount equal to a portion of the subscriber's monthly
39-27 basic service tier charges until the 120th day after the last day
40-1 of the promotion.
40-2 (c) A cable television company may, at the company's option,
40-3 provide the credit required by Subsection (b) by reducing the
40-4 subscriber's monthly service charges over a period not to exceed
40-5 three months.
40-6 (d) Notwithstanding Subsections (b) and (c), the commission,
40-7 on complaint by an affected person, shall determine the amount of
40-8 any credit that a cable television company must provide to a group
40-9 of subscribers. In determining the amount of the credit, if any,
40-10 to be provided to a group of subscribers, the commission shall set
40-11 a fair and equitable amount after considering:
40-12 (1) the nature, type, frequency, and effect of any
40-13 notice subscribers received that may have provided warning that the
40-14 network might become unavailable or whether notice was provided at
40-15 all;
40-16 (2) the value to the affected subscribers of the
40-17 network;
40-18 (3) the relative cost to the cable television company
40-19 of providing the network as determined from published network rate
40-20 cards;
40-21 (4) the value to subscribers, and the cost to the
40-22 cable television company, of any network that has been substituted
40-23 for the unavailable network or provided instead of the network;
40-24 (5) the availability or unavailability, at no
40-25 additional cost to the subscriber, of any continuing program or
40-26 network offerings that may be similar in type or nature to that
40-27 provided by the unavailable network;
41-1 (6) the nature, type, frequency, and effect of the
41-2 promotion by the cable television company of the unavailable
41-3 network; and
41-4 (7) any other factor the commission expressly
41-5 determines is applicable.
41-6 Sec. 86.107. SUBSCRIBER'S RIGHTS. (a) This section applies
41-7 to an affected subscriber who receives a written notice required by
41-8 Section 86.103, 86.105, or 86.106 and elects in writing, by
41-9 telephone, or in person to have the subscriber's service terminated
41-10 or downgraded.
41-11 (b) A subscriber who terminates or downgrades service not
41-12 later than the 45th day after receiving notice may demand and is
41-13 entitled to:
41-14 (1) a rebate of all installation, upgrade, and other
41-15 one-time charges relating to the premium service tier imposed on
41-16 the subscriber during the six-month period preceding the date of
41-17 the network change or significant programming change; and
41-18 (2) a rebate of monthly service charges that the
41-19 subscriber previously paid for, and only for, each cable television
41-20 service or subscription tier affected by a network change or
41-21 significant programming change.
41-22 (c) A rebate prescribed by Subsection (b) is limited to the
41-23 prorated amount paid before the date of the network or significant
41-24 programming change for the period after the date of the change.
41-25 Sec. 86.108. AFFIRMATIVE DEFENSES. In addition to any other
41-26 defenses that may be available under statutory or common law, it is
41-27 an affirmative defense to any claim for a rebate that:
42-1 (1) the promotion was on a national or regional
42-2 network and did not mention any specific cable television company;
42-3 (2) the cable television company did not authorize,
42-4 request, suggest, foster, or cooperate in making the promotion; and
42-5 (3) there was no material relationship between the
42-6 cable television company, any of its officers, or any shareholders
42-7 owning 10 percent or more of its stock and the company making the
42-8 promotion, any of its officers, or any shareholders owning 10
42-9 percent or more of its stock except for relationships between or
42-10 among those companies, officers, or shareholders for the purchasing
42-11 of programming.
42-12 CHAPTER 87. ENFORCEMENT
42-13 Sec. 87.001. PENALTY AND FORFEITURE. (a) A cable television
42-14 company, and each officer, agent, and employee of a cable
42-15 television company, shall obey, observe, and comply with each
42-16 order, direction, or requirement prescribed by the commission under
42-17 this subtitle.
42-18 (b) The commission may impose an administrative penalty
42-19 under Chapter 15 against a cable television company that violates
42-20 this subtitle in any manner, including by failing, omitting, or
42-21 neglecting to obey, observe, or comply with an order, direction, or
42-22 requirement of the commission.
42-23 (c) Except as otherwise provided by this chapter, the
42-24 administrative penalty for a violation may not exceed $1,000.
42-25 Sec. 87.002. FAILURE TO PUBLISH FRANCHISE AGREEMENT ON
42-26 INTERNET. (a) The commission may impose an administrative penalty
42-27 under Chapter 15 against a cable television company that fails to
43-1 comply with Section 83.007(b).
43-2 (b) The amount of the administrative penalty for a violation
43-3 may not exceed $500.
43-4 Sec. 87.003. ADMINISTRATIVE PENALTY RELATING TO SUBSCRIBER
43-5 COMPLAINT DEPARTMENT. (a) The commission may impose an
43-6 administrative penalty against a municipality or cable television
43-7 company that fails to comply with Section 86.004.
43-8 (b) The amount of the administrative penalty for a violation
43-9 may not exceed $1,000.
43-10 Sec. 87.004. APPLICATION OF PROVISION OF CHAPTER 15. Section
43-11 15.024(c) does not apply to an administrative penalty imposed under
43-12 this subchapter.
43-13 SECTION 7. Subchapter A, Chapter 51, Local Government Code,
43-14 is amended by adding Section 51.004 to read as follows:
43-15 Sec. 51.004. LIMIT OF FRANCHISING AUTHORITY AS TO CABLE
43-16 TELEVISION COMPANIES. The franchising authority of home-rule and
43-17 general-law municipalities is subject to Subtitle D, Title 2,
43-18 Utilities Code.
43-19 SECTION 8. Section 282.003(c), Local Government Code, is
43-20 amended to read as follows:
43-21 (c) A franchise under this section:
43-22 (1) is subject to the same petition and election
43-23 provisions that apply to a franchise under Subchapter D, Chapter
43-24 311, Transportation Code; [and]
43-25 (2) is subject to Subtitle D, Title 2, Utilities Code;
43-26 and
43-27 (3) may not extend beyond the period set for its
44-1 termination.
44-2 SECTION 9. (a) This Act takes effect September 1, 2001.
44-3 (b) The Public Utility Commission of Texas shall establish a
44-4 schedule for implementing Subtitle D, Title 2, Utilities Code, as
44-5 added by this Act, including:
44-6 (1) adopting rules required by that subtitle; and
44-7 (2) applying for certificates from the Federal
44-8 Communications Commission for authority to regulate rates.
44-9 (c) The schedule required by Subsection (b) of this section
44-10 must provide for:
44-11 (1) the provisions of that subtitle relating to the
44-12 granting of franchises and certificates of confirmation to be
44-13 implemented not later than January 1, 2002; and
44-14 (2) that subtitle to be completely implemented not
44-15 later than July 1, 2002.
44-16 (d) A cable television company may not obtain or renew a
44-17 franchise during the period beginning on September 1, 2001, and
44-18 ending on the date immediately preceding the date the Public
44-19 Utility Commission of Texas implements the provisions of Subtitle
44-20 D, Title 2, Utilities Code, as added by this Act, relating to the
44-21 granting of franchises and certificates of confirmation. A
44-22 franchise scheduled to expire during that period is extended until
44-23 the end of that period.
44-24 (e) This Act applies to a franchise granted or renewed on or
44-25 after September 1, 2001. A franchise granted or renewed before
44-26 that date is governed by the law in effect on the date it was
44-27 granted or renewed, and that law is continued in effect for that
45-1 purpose.