By Raymond                                            H.B. No. 3553
         77R7926 CBH-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the authority of a municipality to charge certain
 1-3     political subdivisions a franchise fee.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1. Chapter 282, Local Government Code, is amended by
 1-6     adding Section 282.004 to read as follows:
 1-7           Sec. 282.004.  CERTAIN FRANCHISE FEES NOT PERMITTED. (a)  In
 1-8     this section, "utility service" means:
 1-9                 (1)  electric power distribution or transmission
1-10     service;
1-11                 (2)  retail water or sewer service; and
1-12                 (3)  retail natural gas service.
1-13           (b)  Notwithstanding any other law, a municipality may not
1-14     charge a political subdivision of this state that provides utility
1-15     service a franchise fee for using the public grounds or a public
1-16     right-of-way of the municipality as part of the provision of that
1-17     service.
1-18           SECTION 2. This Act takes effect September 1, 2001.  This Act
1-19     does not affect a franchise agreement signed before the effective
1-20     date of this Act, and the law in effect when the agreement was
1-21     signed is continued in effect for that purpose.