AgdaPkt 2005-09-12 - Laserfiche WebLink

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b-~ THE TEXAS TELECOMMUNICATIONS REFORM MEASURE 1 . It creates a statewide cable and video franchise to be administered by the state Public Utility Commission (PUC). 2. It requires an entity seeking to provide cable or video service in Texas after September 1, 2005, to file an application with the PUG for the state-issued certificate of franchise authority. 3. It provides that an entity providing cable or video service pursuant to a franchise agree- ment with a city may not seek a state franchise until the expiration of the existing franchise agreement. However, non-incumbent cable service providers that serve fewer than 40 percent of the total cable customers in a particu- lar municipal franchise area may elect to termi- nate the existing franchise agreement and move to a state-issued certificate of franchise authority if they do so by January 1, 2006. 4. It requires the PUG to issue a certificate of franchise within 14 business days of the receipt of an application provided that, among other things, the applicant: (a) agrees to comply with all federal laws and regulations; (b) agrees to comply with all city regulations regarding the use of the public rights-of-way (ROW), including the police powers of the city; and (c) provides a description of the service area footprint to be served. 5. It provides that a state-issued certificate of franchise shall contain a grant of authority to use a city's ROWs, subject to the police powers of a city. 6. It provides that the certificate of franchise is fully transferable to successors in interest. 7. It provides that a condition of issuance of a statewide franchise is that the obligations of the entity providing cable or video service will continue to be honored, paid, or performed just as though the entity continued to operate under its prior franchise. Page 1 of 3 8. It requires a statewide franchise holder to make a quarterly payment to each city in which it provides service; and that the payment be equal to five percent of gross revenues, as that term is defined in the bill, earned by the franchise holder in that city. 9. It authorizes the state or a city to review the business records of a provider to ensure proper payment of fees. 10. It provides that until the expiration of the incumbent cable provider's franchise agree- ment, a statewide franchise holder shall pay to a city a pro rata amount of cash to cover any in-kind services received by the city. 11. It provides that following the expiration of the incumbent provider's franchise agree- ment, a statewide franchise holder shall pay each city either an amount equal to one per- cent of the provider's gross revenue or a monthly, per-subscriber line fee (if such fee was imposed under previous franchise agree- ments) in lieu of in-kind services and opera- tional grants. 12. It requires an incumbent cable provider to provide certain services, such as cable service to city and other public buildings, until January 1, 2008, or the expiration of a fran- chise agreement, whichever is later, after which time providers will provide the services at their incremental cost and deduct the amount from the franchise fee owed to the city. 13. It exempts the holder of a statewide franchise from any "build-ouf' requirements. 14. It requires: (a) a statewide franchise holder to comply with federal customer service requirements until there are two or more providers offering service to an area; and (b) the PUG to post the number of complaints regarding each service provider on its website. Continued on Page 4 PRIORITY FOCUS/PAGE 3 Visit the League's Official Website--www.cacities,org