BILL ANALYSIS

 

 

Senate Research Center                                                                                                   C.S.S.B. 40

                                                                                                                                          By: Averitt

                                                                                                                        Business & Commerce

                                                                                                                                            6/30/2005

                                                                                                        Committee Report (Substituted)

 

 

AUTHOR'S/SPONSOR'S STATEMENT OF INTENT

 

Current law requires telecommunications providers to compensate municipalities for right-of-way use through access line charges as authorized by Chapter 283 (Management of Public Right-of-Way Used by Telecommunications Provider in Municipality), Local Government Code.  However, telecommunication companies do not have to seek individual franchises from municipalities.  Current law also requires cable providers to enter into individual franchise agreements negotiated with municipalities at the local level.  Generally, as part of the franchise agreement, right-of-way compensation is paid based on a percentage of the provider's gross receipts.   

C.S.S.B. 40 requires the legislature to create a Joint Legislative Oversight Committee on Communications and Technology (committee).  The bill charges the committee with conducting a comprehensive study of right-of-way use and compensation paid to governmental entities by communications and technology providers.

 

RULEMAKING AUTHORITY

 

This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency.

 

SECTION BY SECTION ANALYSIS

 

SECTION 1.  JOINT LEGISLATIVE OVERSIGHT COMMITTEE ON COMMUNICATIONS AND TECHNOLOGY.  (a)  Creates the Joint Legislative Oversight Committee on Communications and Technology (committee). 

 

(b)  Requires the committee to conduct a study on right-of-way use compensation paid to governmental entities by communications and technology service providers. 

 

(c)  Defines "committee."

 

SECTION 2.  COMMITTEE COMPOSITION.  (a)  Sets forth the composition of committee.

 

(b)  Requires the appointed members of the committee to be appointed no later than November 1, 2005.  Provides that an appointed member of the committee serves at the pleasure of the appointing official.     

 

SECTION 3.  STUDY; REPORT.  (a)  Requires the committee to conduct a comprehensive study and file a report with the legislature not later than November 1, 2006, containing the committee's revenue-neutral, technology-neutral, and competitively neutral recommendations concerning compensation paid to governmental entities, including municipalities, by communications and technology service providers.  Requires the report to address certain items.

                       

(b)  Requires the Public Utility Commission to assist with collection of certain information, to maintain the confidentiality of the information, and provide a summary of certain governmental actions.

 

(c)  Provides that the information that is claimed to be confidential under Subsection (b) of this section is exempt from disclosure under Chapter 552 (Public Information), Government Code.

           

(d)  Authorizes the committee to request reports and other information from the Public Utility Commission, governmental entities, and from communications and technology service providers as necessary to carry out this section.

           

SECTION 3. EFFECTIVE DATE. Effective date: upon passage or the 91st after adjournment.