By: Carona  S.B. No. 327
         (In the Senate - Filed January 31, 2013; February 5, 2013,
  read first time and referred to Committee on Business and Commerce;
  February 27, 2013, reported favorably by the following vote:  
  Yeas 8, Nays 0; February 27, 2013, sent to printer.)
 
 
A BILL TO BE ENTITLED
 
AN ACT
 
  relating to termination of franchises to provide cable or video
  service in municipalities.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Subsections (b), (c), and (f), Section 66.004,
  Utilities Code, are amended to read as follows:
         (b)  Beginning September 1, 2005, a cable service provider or
  video service provider [that is not the incumbent cable service
  provider and serves fewer than 40 percent of the total cable
  customers in a particular municipal franchise area] may elect to
  terminate a [that] municipal franchise and seek a state-issued
  certificate of franchise authority by providing written notice to
  the commission and the affected municipality [before January 1,
  2006].  The municipal franchise is terminated on the date the
  commission issues the state-issued certificate of franchise
  authority.
         (c)  A cable service provider that elects under this section
  [Subsection (b), (b-1), or (b-2)] to terminate an existing
  municipal franchise is responsible for remitting to the affected
  municipality before the 91st day after the date the municipal
  franchise is terminated any accrued but unpaid franchise fees due
  under the terminated franchise.  If the cable service provider has
  credit remaining from prepaid franchise fees, the provider may
  deduct the amount of the remaining credit from any future fees or
  taxes it must pay to the municipality, either directly or through
  the comptroller.
         (f)  Except as provided in this chapter, nothing in this
  chapter is intended to abrogate, nullify, or adversely affect in
  any way the contractual rights, duties, and obligations existing
  and incurred by a cable service provider or a video service provider
  before the date a franchise expires or the date a provider
  terminates a franchise under this section [Subsection (b-1) or
  (b-2), as applicable,] and owed or owing to any private person,
  firm, partnership, corporation, or other entity including without
  limitation those obligations measured by and related to the gross
  revenue hereafter received by the holder of a state-issued
  certificate of franchise authority for services provided in the
  geographic area to which such prior franchise or permit
  applies.  All liens, security interests, royalties, and other
  contracts, rights, and interests in effect on September 1, 2005, or
  the date a franchise is terminated under this section [Subsection
  (b-1) or (b-2)] shall continue in full force and effect, without the
  necessity for renewal, extension, or continuance, and shall be paid
  and performed by the holder of a state-issued certificate of
  franchise authority, and shall apply as though the revenue
  generated by the holder of a state-issued certificate of franchise
  authority continued to be generated pursuant to the permit or
  franchise issued by the prior local franchising authority or
  municipality within the geographic area to which the prior permit
  or franchise applies.  It shall be a condition to the issuance and
  continuance of a state-issued certificate of franchise authority
  that the private contractual rights and obligations herein
  described continue to be honored, paid, or performed to the same
  extent as though the cable service provider continued to operate
  under its prior franchise or permit, for the duration of such
  state-issued certificate of franchise authority and any renewals or
  extensions thereof, and that the applicant so agrees.  Any person,
  firm, partnership, corporation, or other entity holding or claiming
  rights herein reserved may enforce same by an action brought in a
  court of competent jurisdiction.
         SECTION 2.  Subsection (h), Section 66.009, Utilities Code,
  is amended to read as follows:
         (h)  Where technically feasible, the holder of a
  state-issued certificate of franchise authority that is not an
  incumbent cable service provider and an incumbent cable service
  provider, including an incumbent cable service provider that holds
  a state-issued certificate of franchise authority [issued under
  Section 66.004(b-1)], shall use reasonable efforts to interconnect
  their cable or video systems for the purpose of providing PEG
  programming. Interconnection may be accomplished by direct cable,
  microwave link, satellite, or other reasonable method of
  connection. The holder of a state-issued certificate of franchise
  authority and the incumbent cable service provider shall negotiate
  in good faith, and the incumbent cable service provider may not
  withhold interconnection of PEG channels.
         SECTION 3.  Subsections (a), (b-1), (b-2), and (b-3),
  Section 66.004, Utilities Code, are repealed.
         SECTION 4.  This Act takes effect immediately if it receives
  a vote of two-thirds of all the members elected to each house, as
  provided by Section 39, Article III, Texas Constitution.  If this
  Act does not receive the vote necessary for immediate effect, this
  Act takes effect September 1, 2013.
 
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