BILL ANALYSIS

Senate Research Center	S.B. 924
	By: Hancock
	Business & Commerce
	6/6/2025
	Enrolled

AUTHOR'S / SPONSOR'S STATEMENT OF INTENT

A cable franchise fee is an annual fee charged by local governments to a private cable television company as compensation for occupying a right-of-way for its cable lines. A telecommunications provider that installs lines in a city's right-of-way pays the city for the right to occupy that right-of way. Current law states that the provider pays the city five percent of their gross revenue.

Many municipalities across the country are attempting to compel satellite TV and video streaming providers to pay cable franchise fees, despite these services not requiring cable lines. If they are successful, customers could pay five percent more for satellite TV and each of their video streaming bills.

S.B. 924 would add clarifying language to prohibit municipalities from charging a cable franchise on a video service provider.  

S.B. 924 amends current law relating to entities that provide video services.

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. Amends Section 66.002(10), Utilities Code, to redefine "video service."

SECTION 2. Amends Chapter 66, Utilities Code, by adding Section 66.017, as follows:

Sec. 66.017. PRESERVATION OF CERTAIN DUTIES. (a) Provides that the enactment of Sections 66.002(10)(B) (relating to providing that the term "video service" does not include certain direct-to-home satellite services) and (C) (relating to providing that the term "video service" does not include any video programming accessed via a service that enables users to access certain services) does not affect the obligation of a person who holds a state-issued certificate of franchise authority on September 1, 2025, to provide the compensation required under this chapter for use of a public right-of-way.

(b) Provides that the enactment of Sections 66.002(10)(B) and (C) does not affect the application of Chapter 66 (State-Issued Cable and Video Franchise) to compensation with respect to services described by those sections provided before September 1, 2025, by a person who was involved in litigation regarding this chapter on January 1, 2025.

SECTION 3. Provides that it is the intent of the legislature that the changes in law made by this Act do not affect the existing right of a municipality to bring an action against a holder or non-holder of a state-issued certificate of franchise authority in a court of competent jurisdiction under Chapter 66, Utilities Code.

SECTION 4. Effective date: September 1, 2025.