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.