By:  Goodman                                                      H.B. No. 3336


A BILL TO BE ENTITLED
AN ACT
relating to authority of the state or local governments to collect reasonable compensation for the use of public property, the creation and funding of the Broadband - Stimulate Provision of Access to Rural Communities fund, and providing for penalties. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Chapter 181, Subtitle B, Title 4, Utilities Code, is amended by adding Subchapter G to read as follows:
SUBCHAPTER G. BROADBAND SERVICE PROVIDER FEE FOR USE OF STATE RIGHT-OF-WAY
Sec. 181.121 PURPOSE. It is the policy of this state and the purpose of this subchapter to ensure that the people who live in rural areas of this state have access to broadband services which are reasonably equivalent in price and quality to those of broadband services offered elsewhere in the state. It is also the purpose of this subchapter to provide for the fair and reasonable compensation of the state for the use of public rights-of-way. Sec. 181.122 DEFINITIONS. For purposes of this subchapter, the following terms shall have the following definitions. (a) "Broadband" or "High-Speed Internet Access Service" means those services that (1) have the capability to transmit data in excess of 200 kilobits per second, or (2) provide transmission to or from the Internet at speeds in excess of 200 kilobits per second. (b) "Broadband Service Provider" means every private entity or person that offers, directly or indirectly, broadband or high-speed internet access service for a fee to end-users, or to such classes of customers as to be effectively available to end-users. (c) "Commission" means the Public Utility Commission of Texas. (d) "Facilities" means all of the plant and equipment of a Broadband Service Provider used in the provision, whether directly or indirectly, of broadband or high-speed internet access service which are placed within State Right-of-Way. (e) "State Right-of-Way" means a real property interest dedicated or otherwise conveyed to the State of Texas or any county of the State of Texas for a public purpose. Sec. 181.123 FEE FOR USE OF STATE RIGHT-OF-WAY. Notwithstanding any other provision of law, each Broadband Service Provider operating in this state shall pay a one-time fee for placing its facilities in the State Right-of-Way. (a) Basis and determination of the fee. The fee shall be: (1) assessed on the linear feet occupied by a Broadband Service Provider's facilities in a State Right-of-Way; and (2) based on fair market rental value for one year of the State Right-of-Way occupied by a Broadband Service Provider's facilities, as determined by the commission. (b) Facilities placed in the State Right-of-Way after August 31, 2003. Each Broadband Service Provider operating in this state shall pay a fee for facilities placed in the State Right-of-Way after August 31, 2003. This fee shall be no more than 100% of the fair market rental value calculated pursuant to subsection (a). (c) Facilities placed in the State Right-of-Way prior to September 1, 2003. Each Broadband Service Provider operation in this state shall pay a fee for facilities placed in the State Right-of-Way prior to September 1, 2003. This fee shall be no more than 25% of the fair market rental value calculated pursuant to subsection (a). (d) The commission shall adopt rules. Pursuant to this section, the commission shall adopt rules governing the determination of a reasonable fee and whether the commission requires a hearing to determine the actual amount of the fee. Notwithstanding any other provision of law, the commission shall have the authority to determine whether a Broadband Service Provider is allowed to recover its payment of the fee from its end-user customers. (e) Not unreasonably discriminatory. The application of this fee shall not be unreasonably discriminatory and shall not unlawfully prohibit or have the effect of prohibiting the ability of any entity to provide any interstate or intrastate telecommunications service. Sec. 181.124 ASSESSMENT AND COLLECTION OF THE FEE. Notwithstanding any other provision of law, after the commission determines the amount of the fee, the Comptroller shall assess and collect the fee. (a) Assessment of the fee. The Comptroller shall adopt rules governing the assessment of the fee in accordance with the policies set forth by the commission. (b) Collection of the fee. The Comptroller shall adopt rules governing the collection of the fee in accordance with the policies set forth by the commission. (c) Penalty for failure to pay. The commission and the Comptroller are given full jurisdiction and authority to assess administrative penalties pursuant to Subchapter B, Chapter 15, Title 2, Utilities Code, against any entity, irrespective of whether such entity is a holder of a certificate under Title 2 of this Code, which fails to timely pay any assessments under this subchapter. Sec. 181.125 USE OF THE FEE. (a) Fifty percent of the total fees collected pursuant to this subchapter after costs have been recovered under subsection (c) shall be deposited into the state's General Revenue fund. (b) Fifty percent of the total fees collected pursuant to this subchapter after costs have been recovered under subsection (c) shall be deposited into the Broadband-Stimulate Provision of Access to Rural Communities fund authorized in Subchapter F, Chapter 57, Subtitle C, Title 2, Utilities Code. (c) The commission and the Comptroller shall recover their costs of implementing this subchapter and Subchapter F, Chapter 57, Subtitle C, Title 2, Utilities Code, from the total fees collected. Sec. 181.126 REPORTING REQUIRED. (a) The Comptroller or the commission may require a Broadband Service Provider to provide any report or information necessary to fulfill the Comptroller's or the commission's duties under this subchapter. (b) Information provided to the Comptroller or the commission under this subchapter is confidential and exempt from disclosure under Chapter 552, Government Code. Sec. 181.127 COMMISSION AUTHORITY. Notwithstanding any other law, the commission has the jurisdiction to enforce this subchapter. SECTION 2. Chapter 57, Subtitle C, Title 2, Utilities Code, is amended by adding Subchapter F to read as follows:
SUBCHAPTER F. BROADBAND - STIMULATE PROVISION OF ACCESS TO RURAL COMMUNITIES FUND
Sec. 57.061 Establishment of the Broadband - Stimulate Provision of Access to Rural Communities fund. (a) The Broadband - Stimulate Provision of Access to Rural Communities fund is established to stimulate the deployment of broadband and high-speed internet access services to rural areas of the state. (b) The Broadband - Stimulate Provision of Access to Rural Communities fund is a trust fund outside the state treasury with the Comptroller acting as trustee. (c) Interest earned on the Broadband - Stimulate Provision of Access to Rural Communities fund shall be credited to the fund. (d) The definitions in Chapter 181, Subtitle B, Title 4, Utilities Code shall apply to this subchapter. Sec. 57.062 Disbursements from the Broadband - Stimulate Provision of Access to Rural Communities fund. The commission shall adopt rules to establish requirements for the disbursement of funds from the Broadband - Stimulate Provision of Access to Rural Communities fund. (a) Disbursements shall be made to pay for all or part of the purchase and deployment of equipment and services necessary to provide Broadband service in rural areas of the state. (b) The comptroller shall disburse the funds in accordance with the rules established by the commission. Sec. 57.066 COMMISSION AUTHORITY. Notwithstanding any other law, the commission has the jurisdiction to enforce this subchapter. SECTION 3. This Act takes effect September 1, 2003.