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A BILL TO BE ENTITLED
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AN ACT
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relating to termination of franchises to provide cable or video |
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service in municipalities. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subsections (b), (c), and (f), Section 66.004, |
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Utilities Code, are amended to read as follows: |
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(b) Beginning September 1, 2005, a cable service provider or |
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video service provider [that is not the incumbent cable service
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provider and serves fewer than 40 percent of the total cable
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customers in a particular municipal franchise area] may elect to |
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terminate a [that] municipal franchise and seek a state-issued |
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certificate of franchise authority by providing written notice to |
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the commission and the affected municipality [before January 1,
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2006]. The municipal franchise is terminated on the date the |
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commission issues the state-issued certificate of franchise |
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authority. |
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(c) A cable service provider that elects under this section |
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[Subsection (b), (b-1), or (b-2)] to terminate an existing |
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municipal franchise is responsible for remitting to the affected |
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municipality before the 91st day after the date the municipal |
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franchise is terminated any accrued but unpaid franchise fees due |
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under the terminated franchise. If the cable service provider has |
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credit remaining from prepaid franchise fees, the provider may |
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deduct the amount of the remaining credit from any future fees or |
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taxes it must pay to the municipality, either directly or through |
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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 provider |
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before the date a franchise expires or the date a provider |
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terminates a franchise under this section [Subsection (b-1) or
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(b-2), as applicable,] and owed or owing to any private person, |
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firm, partnership, corporation, or other entity including without |
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limitation those obligations measured by and related to the gross |
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revenue hereafter received by the holder of a state-issued |
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certificate of franchise authority for services provided in the |
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geographic area to which such prior franchise or permit |
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applies. All liens, security interests, royalties, and other |
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contracts, rights, and interests in effect on September 1, 2005, or |
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the date a franchise is terminated under this section [Subsection
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(b-1) or (b-2)] shall continue in full force and effect, without the |
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necessity for renewal, extension, or continuance, and shall be paid |
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and performed by the holder of a state-issued certificate of |
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franchise authority, and shall apply as though the revenue |
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generated by the holder of a state-issued certificate of franchise |
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authority continued to be generated pursuant to the permit or |
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franchise issued by the prior local franchising authority or |
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municipality within the geographic area to which the prior permit |
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or franchise applies. It shall be a condition to the issuance and |
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continuance of a state-issued certificate of franchise authority |
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that the private contractual rights and obligations herein |
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described continue to be honored, paid, or performed to the same |
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extent as though the cable service provider continued to operate |
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under its prior franchise or permit, for the duration of such |
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state-issued certificate of franchise authority and any renewals or |
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extensions thereof, and that the applicant so agrees. Any person, |
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firm, partnership, corporation, or other entity holding or claiming |
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rights herein reserved may enforce same by an action brought in a |
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court of competent jurisdiction. |
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SECTION 2. Subsection (h), Section 66.009, Utilities Code, |
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is amended to read as follows: |
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(h) Where technically feasible, the holder of a |
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state-issued certificate of franchise authority that is not an |
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incumbent cable service provider and an incumbent cable service |
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provider, including an incumbent cable service provider that holds |
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a state-issued certificate of franchise authority [issued under
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Section 66.004(b-1)], shall use reasonable efforts to interconnect |
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their cable or video systems for the purpose of providing PEG |
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programming. Interconnection may be accomplished by direct cable, |
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microwave link, satellite, or other reasonable method of |
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connection. The holder of a state-issued certificate of franchise |
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authority and the incumbent cable service provider shall negotiate |
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in good faith, and the incumbent cable service provider may not |
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withhold interconnection of PEG channels. |
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SECTION 3. Subsections (a), (b-1), (b-2), and (b-3), |
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Section 66.004, Utilities Code, are repealed. |
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SECTION 4. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2013. |