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.