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SENATE RESOLUTION
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BE IT RESOLVED by the Senate of the State of Texas, 82nd |
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Legislature, Regular Session, 2011, That Senate Rule 12.03 be |
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suspended in part as provided by Senate Rule 12.08 to enable the |
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conference committee appointed to resolve the differences on |
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Senate Bill 1087 (state-issued certificates of franchise |
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authority to provide cable service and video service) to consider |
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and take action on the following matters: |
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(1) Senate Rules 12.03(1) and (2) are suspended to permit |
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the committee to change and omit text not in disagreement in |
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proposed SECTION 2 of the bill, in amended Subsection (a), |
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Section 66.004, Utilities Code, to read as follows: |
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(a) A cable service provider or a video service provider |
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that currently has or had previously received a franchise to |
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provide cable service or video service with respect to such |
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municipalities is not eligible to seek a state-issued |
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certificate of franchise authority under this chapter as to those |
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municipalities until the expiration date of the existing |
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franchise agreement, except as provided by Subsections (b), |
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(b-1), (b-2), (b-3), and (c). |
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Explanation: This change is necessary to clarify that a |
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cable service provider or video service provider that received a |
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franchise to provide cable service or video service to a |
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municipality is not eligible to seek a state-issued certificate |
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of franchise authority before the expiration of the franchise |
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except as provided by Section 66.004, Utilities Code. |
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(2) Senate Rules 12.03(1) and (4) are suspended to permit |
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the committee to change text which is not in disagreement and to |
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add text on a matter which is not included in either the house or |
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senate version of the bill in proposed SECTION 2 of the bill, in |
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added Subsections (b-1), (b-2), and (b-3), Section 66.004, |
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Utilities Code, to read as follows: |
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(b-1) Beginning September 1, 2011, a cable service |
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provider or video service provider in a municipality with a |
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population of less than 215,000 that was not allowed to or did not |
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terminate a municipal franchise under Subsection (b) may elect to |
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terminate not less than all unexpired franchises in |
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municipalities with a population of less than 215,000 and seek a |
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state-issued certificate of franchise authority for each area |
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served under a terminated municipal franchise by providing |
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written notice to the commission and each affected municipality |
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before January 1, 2012. A municipal franchise is terminated on |
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the date the commission issues a state-issued certificate of |
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franchise authority to the provider for the area served under |
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that terminated franchise. |
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(b-2) A cable service provider or video service provider |
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in a municipality with a population of at least 215,000 may |
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terminate a municipal franchise in that municipality in the |
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manner described by Subsection (b-1) if: |
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(1) the cable service provider or video service |
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provider is not the incumbent cable service provider in that |
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municipality; and |
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(2) the incumbent cable service provider received a |
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state-issued certificate of franchise authority from the |
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commission before September 1, 2011. |
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(b-3) A municipality with a population of at least |
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215,000 may enter into an agreement with any cable service |
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provider in the municipality to terminate a municipal cable |
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franchise before the expiration of the franchise. To the extent |
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that the mutually agreed on terms and conditions for early |
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termination of the unexpired municipal cable franchise conflict |
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with a provision of this chapter, the agreed on terms and |
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conditions control. |
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Explanation: This change is necessary to differentiate |
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between termination of franchises by service providers in |
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municipalities with populations of less than 215,000 and by |
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service providers in municipalities with populations of at least |
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215,000. |
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(3) Senate Rule 12.03(1) is suspended to permit the |
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committee to change text not in disagreement in proposed SECTION |
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2 of the bill, in amended Subsections (c) and (f), Section |
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66.004, Utilities Code, to read as follows: |
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(c) A cable service provider [that serves fewer than 40
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percent of the total cable customers in a municipal franchise
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area and] that elects under Subsection (b), (b-1), or (b-2) to |
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terminate an existing municipal franchise is responsible for |
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remitting to the affected municipality before the 91st day after |
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the date the municipal franchise is terminated any accrued but |
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unpaid franchise fees due under the terminated franchise. If the |
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cable service provider has credit remaining from prepaid |
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franchise fees, the provider may deduct the amount of the |
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remaining credit from any future fees or taxes it must pay to the |
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municipality, either directly or through the comptroller. |
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(f) Except as provided in this chapter, nothing in this |
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chapter is intended to abrogate, nullify, or adversely affect in |
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any way the contractual rights, duties, and obligations existing |
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and incurred by a cable service provider or a video service |
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provider before the date a franchise expires or the date a |
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provider terminates a franchise under Subsection (b-1) or (b-2), |
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as applicable, [enactment of this chapter,] and owed or owing to |
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any private person, firm, partnership, corporation, or other |
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entity including without limitation those obligations measured |
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by and related to the gross revenue hereafter received by the |
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holder of a state-issued certificate of franchise authority for |
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services provided in the geographic area to which such prior |
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franchise or permit applies. All liens, security interests, |
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royalties, and other contracts, rights, and interests in effect |
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on September 1, 2005, or the date a franchise is terminated under |
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Subsection (b-1) or (b-2) shall continue in full force and |
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effect, without the necessity for renewal, extension, or |
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continuance, and shall be paid and performed by the holder of a |
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state-issued certificate of franchise authority, and shall apply |
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as though the revenue generated by the holder of a state-issued |
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certificate of franchise authority continued to be generated |
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pursuant to the permit or franchise issued by the prior local |
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franchising authority or municipality within the geographic area |
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to which the prior permit or franchise applies. It shall be a |
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condition to the issuance and continuance of a state-issued |
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certificate of franchise authority that the private contractual |
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rights and obligations herein described continue to be honored, |
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paid, or performed to the same extent as though the cable service |
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provider continued to operate under its prior franchise or |
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permit, for the duration of such state-issued certificate of |
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franchise authority and any renewals or extensions thereof, and |
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that the applicant so agrees. Any person, firm, partnership, |
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corporation, or other entity holding or claiming rights herein |
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reserved may enforce same by an action brought in a court of |
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competent jurisdiction. |
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Explanation: These changes are necessary to add |
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cross-references to Subsection (b-2), Section 66.004, Utilities |
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Code. |
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(4) Senate Rules 12.03(1), (2), and (4) are suspended to |
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permit the committee to change text not in disagreement, omit |
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text not in disagreement, and add text on a matter which is not |
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included in either the house or senate version of the bill, in |
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proposed SECTION 4 of the bill, in amended Subsection (c), |
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Section 66.006 and added Subsection (c-2), Section 66.006, |
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Utilities Code, to read as follows: |
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(c) All fees paid to municipalities under this section |
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are paid in accordance with 47 U.S.C. Sections 531 and |
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541(a)(4)(B) and may be used by the municipality as allowed by |
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federal law; further, these payments are not chargeable as a |
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credit against the franchise fee payments authorized under this |
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chapter. |
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(c-2) A municipality that receives fees under this |
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section: |
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(1) shall maintain revenue from the fees in a |
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separate account established for that purpose; |
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(2) may not commingle revenue from the fees with any |
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other money; |
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(3) shall maintain a record of each deposit to and |
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disbursement from the separate account, including a record of the |
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payee and purpose of each disbursement; and |
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(4) may not spend revenue from the fees except |
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directly from the separate account. |
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Explanation: This change is necessary to clarify that all |
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fees paid to municipalities under Section 66.006, Utilities |
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Code, are not chargeable as a credit against franchise fee |
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payments authorized under Chapter 66, Utilities Code, and that |
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municipalities may not spend revenue from fees received under |
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Section 66.006 except by spending the revenue directly from a |
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separate account, to remove language requiring a detailed |
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accounting of deposits, and to reletter Subsection (c-3) as |
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Subsection (c-2). |
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(5) Senate Rules 12.03(1) and (2) are suspended to permit |
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the committee to change and omit text not in disagreement in |
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proposed SECTION 4 of the bill, in amended Subsection (d), |
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Section 66.006, Utilities Code, to read as follows: |
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(d) The following services shall continue to be provided |
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by the cable provider that was furnishing services pursuant to |
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its municipal cable franchise [until January 1, 2008, or] until |
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the expiration or termination [term] of the franchise [was to
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expire, whichever is later,] and thereafter as provided in |
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Subdivisions (1) and (2) below: |
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(1) institutional network capacity, however defined |
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or referred to in the municipal cable franchise but generally |
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referring to a private line data network capacity for use by the |
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municipality for noncommercial purposes, shall continue to be |
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provided at the same capacity as was provided to the municipality |
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prior to the date of expiration or [the] termination, provided |
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that the municipality will compensate the provider for the actual |
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incremental cost of the capacity; and |
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(2) cable services to community public buildings, |
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such as municipal buildings and public schools, shall continue to |
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be provided to the same extent provided immediately prior to the |
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date of the termination. On [Beginning on January 1, 2008, or] |
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the expiration or termination of the franchise agreement, |
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[whichever is later,] a provider that provides the services may |
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deduct from the franchise fee to be paid to the municipality an |
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amount equal to the actual incremental cost of the services if |
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the municipality requires the services after that date. Such |
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cable service generally refers to the existing cable drop |
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connections to such facilities and the tier of cable service |
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provided pursuant to the franchise at the time of the expiration |
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or termination. |
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Explanation: This change is necessary to clarify that |
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institutional network capacity and cable services to community |
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public buildings shall continue to be provided in all |
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municipalities as they were provided before the expiration or |
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termination of a franchise. |
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(6) Senate Rule 12.03(1) is suspended to permit the |
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committee to change text not in disagreement in proposed SECTION |
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6 of the bill, to read as follows: |
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SECTION 6. (a) A municipality that received fees |
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described by Section 66.006(c), Utilities Code, before September |
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1, 2011, shall, on September 1, 2011, transfer any fees that have |
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not been disbursed to a separate account as required by Section |
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66.006(c-2), Utilities Code, as added by this Act. |
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(b) The change in law made by this Act in adding Section |
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66.006(c-2)(3), Utilities Code, applies only to transfers, |
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deposits, and disbursements made on or after the effective date |
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of this Act. A transfer, deposit, or disbursement made before |
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the effective date of this Act is governed by the law in effect on |
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the date the transfer, deposit, or disbursement was made, and the |
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former law is continued in effect for that purpose. |
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Explanation: These changes are necessary to correct |
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cross-references. |
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_______________________________ |
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President of the Senate |
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I hereby certify that the |
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above Resolution was adopted by |
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the Senate on May 28, 2011, by the |
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following vote: Yeas 31, Nays 0. |
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_______________________________ |
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Secretary of the Senate |