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Statutes > Texas > Local-government-code > Title-9-public-buildings-and-grounds > Chapter-283-management-of-public-right-of-way-used-by-telecommunications-provider-in-municipality

LOCAL GOVERNMENT CODE

TITLE 9. PUBLIC BUILDINGS AND GROUNDS

SUBTITLE A. MUNICIPAL PUBLIC BUILDINGS AND GROUNDS

CHAPTER 283. MANAGEMENT OF PUBLIC RIGHT-OF-WAY USED BY

TELECOMMUNICATIONS PROVIDER IN MUNICIPALITY

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 283.001. STATE POLICY; PURPOSE. (a) It is the policy of

this state to:

(1) encourage competition in the provision of telecommunications

services;

(2) reduce the barriers to entry for providers of services so

that the number and types of services offered by providers

continue to increase through competition;

(3) ensure that providers of telecommunications services do not

obtain a competitive advantage or disadvantage in their ability

to obtain use of a public right-of-way within a municipality; and

(4) fairly reduce the uncertainty and litigation concerning

franchise fees.

(b) It is also the policy of this state that municipalities:

(1) retain the authority to manage a public right-of-way within

the municipality to ensure the health, safety, and welfare of the

public; and

(2) receive from certificated telecommunications providers fair

and reasonable compensation for the use of a public right-of-way

within the municipality.

(c) The purpose of this chapter is to establish a uniform method

for compensating municipalities for the use of a public

right-of-way by certificated telecommunications providers that:

(1) is administratively simple for municipalities and

telecommunications providers;

(2) is consistent with state and federal law;

(3) is competitively neutral;

(4) is nondiscriminatory;

(5) is consistent with the burdens on municipalities created by

the incursion of certificated telecommunications providers into a

public right-of-way; and

(6) provides fair and reasonable compensation for the use of a

public right-of-way.

Added by Acts 1999, 76th Leg., ch. 840, Sec. 1, eff. Sept. 1,

1999.

Sec. 283.002. DEFINITIONS. In this chapter:

(1) "Access line":

(A) means, unless the commission adopts a different definition

under Section 283.003, a unit of measurement representing:

(i) each switched transmission path of the transmission media

that is physically within a public right-of-way extended to the

end-use customer's premises within the municipality, that allows

the delivery of local exchange telephone services within a

municipality, and that is provided by means of owned facilities,

unbundled network elements or leased facilities, or resale;

(ii) each termination point or points of a nonswitched telephone

or other circuit consisting of transmission media located within

a public right-of-way connecting specific locations identified

by, and provided to, the end-use customer for delivery of

nonswitched telecommunications services within the municipality;

or

(iii) each switched transmission path within a public

right-of-way used to provide central office-based PBX-type

services for systems of any number of stations within the

municipality, and in that instance, one path shall be counted for

every 10 stations served; and

(B) may not be construed to include interoffice transport or

other transmission media that do not terminate at an end-use

customer's premises or to permit duplicate or multiple assessment

of access line rates on the provision of a single service.

(2) "Certificated telecommunications provider" means a person

who has been issued a certificate of convenience and necessity,

certificate of operating authority, or service provider

certificate of operating authority by the commission to offer

local exchange telephone service or a person who provides voice

service.

(3) "Commission" means the Public Utility Commission of Texas.

(4) "Consumer price index" means the annual revised consumer

price index for all urban consumers for Texas, as published by

the Federal Bureau of Labor Statistics.

(5) "Local exchange telephone service" has the meaning assigned

by Section 51.002, Utilities Code.

(6) "Public right-of-way" means the area on, below, or above a

public roadway, highway, street, public sidewalk, alley,

waterway, or utility easement in which the municipality has an

interest. The term does not include the airwaves above a

right-of-way with regard to wireless telecommunications.

(7) "Voice service" means voice communications services provided

through wireline facilities located at least in part in the

public right-of-way, without regard to the delivery technology,

including Internet protocol technology. The term does not

include voice service provided by a commercial mobile service

provider as defined by 47 U.S.C. Section 332(d).

Added by Acts 1999, 76th Leg., ch. 840, Sec. 1, eff. Sept. 1,

1999.

Amended by:

Acts 2005, 79th Leg., 2nd C.S., Ch.

2, Sec. 28, eff. September 7, 2005.

Sec. 283.003. COMMISSION REVIEW. (a) Not later than September

1, 2002, the commission shall determine whether changes in

technology, facilities, or competitive or market conditions

justify a modification in the commission-established categories

of access lines or, if necessary, the adoption of a definition of

"access line" provided by this section. The commission may not

begin a review authorized by this section before March 1, 2002.

(b) As part of the proceeding described by Subsection (a), and

as necessary after that proceeding, the commission by rule may

modify the definition of "access line" and the categories of

access lines as necessary to ensure competitive neutrality and

nondiscriminatory application and to maintain consistent levels

of compensation, as annually increased by growth in access lines

and consumer price index, as applicable, to the municipalities.

(c) After September 1, 2002, the commission, on its own motion,

shall make the determination required by this section at least

once every three years.

Added by Acts 1999, 76th Leg., ch. 840, Sec. 1, eff. Sept. 1,

1999.

Sec. 283.004. APPLICATION. This chapter applies only to

municipal regulations and fees imposed on and collected from

certificated telecommunications providers.

Added by Acts 1999, 76th Leg., ch. 840, Sec. 1, eff. Sept. 1,

1999.

Sec. 283.005. INFORMATION. (a) The commission may collect and

compile any information from certificated telecommunications

providers and municipalities as is necessary to implement this

chapter.

(b) The commission shall maintain the confidentiality of the

information described by Subsection (a) in accordance with

Section 52.207, Utilities Code.

(c) Information provided to municipalities under this chapter

shall be governed by confidentiality procedures established by

the commission in compliance with Section 52.207, Utilities Code.

Added by Acts 1999, 76th Leg., ch. 840, Sec. 1, eff. Sept. 1,

1999.

Sec. 283.006. FEE REQUIREMENT FOR USE OF RIGHT-OF-WAY. (a)

Notwithstanding any other law, a certificated telecommunications

provider that does not use a public right-of-way within the

municipality may not be required to pay franchise fees,

right-of-way fees or any other fee or other compensation, other

than a fee or compensation excluded from the "base amount" under

Section 283.053(a), directly to the municipality to provide local

exchange telephone service in the municipality.

(b) This section does not affect the number of access lines

counted and reported to the commission under Section 283.055.

(c) The commission shall adopt rules to determine the method of

payment and to ensure that access line fees are paid on a

competitively neutral and non-discriminatory basis by

certificated telecommunications providers that provide more

access lines than they purchase from an underlying provider of

resold services or unbundled network elements.

Added by Acts 1999, 76th Leg., ch. 840, Sec. 1, eff. Sept. 1,

1999.

SUBCHAPTER B. RIGHT-OF-WAY FEES

Sec. 283.051. RIGHT-OF-WAY FEE. (a) Notwithstanding any other

law, a certificated telecommunications provider that provides

telecommunications services within a municipality is required to

pay as compensation to a municipality for use of the public

rights-of-way in the municipality only the amount determined by

the commission under Section 283.055.

(b) This section does not affect the right of a municipality to

initiate legal action against a certificated telecommunications

provider that uses a public right-of-way to provide local

exchange telephone service within a municipality and has not

compensated the municipality in accordance with this chapter.

(c) Fees imposed under this chapter shall constitute "a

municipal fee" or "municipal fees" within the meaning of the

Utilities Code.

Added by Acts 1999, 76th Leg., ch. 840, Sec. 1, eff. Sept. 1,

1999.

Sec. 283.052. EFFECT OF PAYMENT OF RIGHT-OF-WAY FEES TO

MUNICIPALITY. (a) Subject to the requirements of Sections

283.056 and 283.057, a certificated telecommunications provider

that complies with this chapter and commission orders issued

under this chapter:

(1) may erect poles or construct conduit, cable, switches, and

related appurtenances and facilities and excavate within a public

right-of-way to provide telecommunications service; and

(2) is not subject to municipal franchise requirements.

(b) All use of a public right-of-way is nonexclusive and subject

to Section 283.056.

Added by Acts 1999, 76th Leg., ch. 840, Sec. 1, eff. Sept. 1,

1999.

Sec. 283.053. BASE AMOUNT. (a) In determining a municipality's

"base amount" under this section, pole rental fees, special

assessments, and taxes of any kind, including ad valorem or sales

and use taxes, or other compensation not related to the use of a

public right-of-way, are not included.

(b) For purposes of determining the amount of a municipality's

right-of-way fee under Section 283.055, the "base amount" for a

municipality not described by another subsection is the total

amount of revenue received by the municipality in franchise,

license, permit, and application fees and in-kind services or

facilities from certificated telecommunications providers in 1998

within the boundaries of the municipality, including all newly

annexed areas. The base amount prescribed under this subsection

shall include the municipal fee rate escalation provisions and

the value of in-kind services or facilities received in 1998 in

accordance with Subsection (f) specifically prescribed in

applicable agreements or ordinances effective or adopted by

January 12, 1999, unless the governing body of the municipality

elects otherwise. However, that additional compensation may not

become part of the base amount before it becomes effective under

the existing franchise agreement or ordinance.

(c) The base amount for a municipality located in a county with

a population of less than 25,000 or a municipality that either

did not have an effective franchise agreement or ordinance on

January 12, 1999, or was not in existence on that date shall be,

at the election of the governing body of the municipality, equal

to:

(1) an amount not greater than the statewide average fee per

line for each category of access line of the certificated

telecommunications provider with the greatest number of access

lines in that municipality, multiplied by the total number of

access lines in each category located within the boundaries of

the municipality on December 31, 1998, for a municipality in

existence on that date, or on the date of incorporation for a

municipality incorporated after that date;

(2) an amount not greater than the base amount determined for a

similarly sized municipality in the same or an adjacent county in

which the certificated telecommunications provider with the

greatest number of access lines in the municipality is the same

for each municipality; or

(3) the total amount of revenue received by the municipality in

franchise, license, permit, and application fees from all

certificated telecommunications providers in 1998.

(d) The base amount for a municipality that was involved in

litigation relating to franchise fees with one or more

certificated telecommunications providers during any part of 1998

and that, not later than December 1, 1999, repeals any ordinance

subject to dispute in the litigation, voluntarily dismisses with

prejudice any claims in the litigation for compensation, and

agrees to waive any potential claim for compensation under any

franchise agreement or ordinance expired or in existence on

September 1, 1999, is equal to, at the municipality's election:

(1) an amount not to exceed the state average access line rate

on a per category basis for the certificated telecommunications

provider with the greatest number of access lines in that

municipality multiplied by the total number of access lines

located within the boundaries of the municipality on December 31,

1998, including any newly annexed areas; or

(2) an amount not to exceed 21 percent of the total sales and

use tax revenue received by the municipality pursuant to Chapter

321, Tax Code. The amount does not include sales and use taxes

collected under:

(A) Chapter 451, 452, 453, or 454, Transportation Code, for a

mass transit authority;

(B) Chapter 504 or 505;

(C) Chapters 334 and 335, Local Government Code; or

(D) Chapters 321, 322, and 323, Tax Code, for a special

district, including health service, crime control, hospital, and

emergency service districts.

(e) A litigating municipality electing to dismiss with prejudice

its claims in the litigation and repealing any ordinance subject

to dispute in the litigation does not, by making the election,

waive any defenses it may have to claims by other parties to the

litigation. A municipality in litigation relating to franchise

fees with one or more certificated telecommunications providers

during any part of 1998 that does not make an effective election

under Subsection (d) shall be governed by Subsection (b).

(f) For the purpose of determining the base amount, in-kind

services or facilities provided to municipalities under existing

franchise agreements or ordinances by certificated

telecommunications providers shall be valued at one percent of

the total 1998 revenue from franchise, permit, license, and

application fees paid to the municipality under all applicable

telecommunications franchise agreements or ordinances, unless a

municipality can establish before the commission that those

services or facilities received by the municipality had a greater

value in 1998.

Added by Acts 1999, 76th Leg., ch. 840, Sec. 1, eff. Sept. 1,

1999.

Amended by:

Acts 2007, 80th Leg., R.S., Ch.

885, Sec. 3.18, eff. April 1, 2009.

Sec. 283.054. EXISTING FRANCHISE AGREEMENTS AND ORDINANCES. (a)

Except as otherwise provided by this chapter, this chapter does

not affect the validity of a franchise agreement or ordinance

with a certificated telecommunications provider executed before

January 12, 1999. A municipality may continue to enforce a

franchise agreement or ordinance and to collect franchise fees

and other charges under that franchise agreement or ordinance

until the date on which the agreement or ordinance expires by its

own terms or is terminated in accordance with the terms of this

section. A provider may elect to terminate a franchise agreement

or obligations under an existing ordinance as of the effective

date of the right-of-way fee rates adopted in accordance with the

commission's rules adopted under this chapter. A provider

terminating a franchise agreement or obligations under an

existing ordinance under this section shall become governed by

this chapter on the date of termination. A termination under this

subsection does not affect the calculation of the municipality's

base amount under Section 283.053. A certificated

telecommunications provider electing to terminate an existing

franchise agreement or obligations under an ordinance under this

section shall provide notice to the commission and the affected

municipality not later than December 1, 1999.

(b) If a franchise agreement or obligations under an ordinance

in a municipality expire or are terminated under Subsection (a)

before the commission has determined the amounts to be paid to a

municipality, the affected certificated telecommunications

providers operating in the municipality shall continue paying at

the rates required under the terms of the expired agreement or

ordinance until the commission's determination and the

certificated telecommunications provider's implementation of

appropriate rates under this chapter.

(c) During the period in which a franchise agreement or

ordinance described by Subsection (a) is in effect, a

certificated telecommunications provider not subject to an

existing franchise agreement or ordinance that wants to construct

facilities to offer telecommunications services in the

municipality shall pay right-of-way fees that are competitively

neutral and non-discriminatory, consistent with the charges of

the most recent agreement or ordinance between the municipality

and the certificated telecommunications provider serving the

largest number of access lines within the municipality. The

provider shall pay those fees for the duration of that agreement

or ordinance or until the right-of-way fees established by

commission rule take effect. If the existing franchise agreement

or ordinance contains a provision requiring in-kind services or

facilities, the certificated telecommunications provider not

subject to an existing franchise agreement or ordinance shall pay

an amount equal to an additional one percent of its total fees

under the applicable agreement or ordinance in lieu of any

in-kind services or facilities, if any, that otherwise are

required under the terms of the existing franchise agreement or

ordinance. However, the municipality may not require a

certificated telecommunications provider to provide any services

or facilities without compensation or at below-market rates for

the right to use a public right-of-way or to provide

telecommunications services in the municipality. On request of

the certificated telecommunications provider not subject to an

existing franchise agreement or ordinance, the commission shall

convert the compensation under the existing franchise agreement

or ordinance to a fee per access line on a competitively neutral

and non-discriminatory basis, and the certificated

telecommunications provider may elect to pay the municipality on

a fee per access line basis rather than the manner of

compensation provided under the existing franchise agreement or

ordinance.

Added by Acts 1999, 76th Leg., ch. 840, Sec. 1, eff. Sept. 1,

1999.

Sec. 283.055. DETERMINATION OF FEES BY COMMISSION. (a) Not

later than November 1, 1999, the commission shall establish not

more than three categories of access lines for statewide use.

(b) Not later than March 1, 2000, the commission shall

establish:

(1) for each municipality, rates per access line by category for

the use of the rights-of-way in that municipality; and

(2) the statewide average of those rates per access line by

category for each certificated telecommunications provider, if

necessary.

(c) The rates when applied to the total number of access lines

by category in the municipality shall be equal to the base

amount.

(d) Not later than December 1, 1999, a municipality that wants

to effect an allocation of the base amount over specific access

line categories to be assessed rates shall notify the commission

of the desired allocation. The commission shall establish an

allocation of the base amount over the categories of access lines

if a municipality does not file its proposed allocation by

December 1, 1999. A municipality may request a modification of

the commission's allocation not more than once every 24 months by

notifying the commission and all affected certificated

telecommunications providers in September of that year that the

municipality wants to change the allocation for the next calendar

year. A municipality's allocation shall be implemented unless, on

complaint by an affected certificated telecommunications

provider, the commission determines that the allocation is not

just and reasonable, is not competitively neutral, or is

discriminatory.

(e) Rates imposed under this section and the allocation among

certificated telecommunications providers must be exercised in a

competitively neutral manner, may not unduly impair competition,

must be non-discriminatory, and must comply with state and

federal law. The commission shall determine the applicable rates

for each municipality for each category, taking into account the

allocation under Subsection (d) and the type, use, and function

of access lines.

(f) Certificated telecommunications providers shall pay to the

municipality a quarterly amount calculated monthly based on the

access line rates established by the commission under this

section and the number of access lines as reflected in the

reports filed under Subsection (j). The providers shall make the

quarterly payment not later than 45 days after the end of the

quarter.

(g) Beginning 24 months after the date the commission

establishes rates per access line, the commission shall annually

adjust the rates per access line for each municipality by an

amount equal to one-half the annual change, if any, in the

consumer price index. At that time, the commission shall provide

each certificated telecommunications provider and municipality

with the adjusted monthly rates for each category of access line.

(h) On an annual basis, an affected municipality may provide

notice to the commission to decline all or any portion of any

increase in the per category access line rates.

(i) A certificated telecommunications provider may not be

required to remit a right-of-way fee to a municipality on those

access lines that have been resold, leased, or otherwise provided

to another certificated telecommunications provider, if the

underlying certificated telecommunications provider supplying

those services or facilities has been furnished with adequate

proof that the provider of services to the end-use customer will

directly remit to the municipality a right-of-way fee based on

those access lines.

(j) On a quarterly basis, each certificated telecommunications

provider shall file a report with the commission that shows the

number of access lines, including access lines by category, that

the provider has within each municipality at the end of each

month of the quarter. The provider shall include with the report

a certified statement from an authorized officer or duly

authorized representative of the provider stating that the

information contained in the report is true and correct to the

best of the officer's or representative's knowledge and belief

after inquiry. On request and subject to the confidentiality

protections of Section 283.005, each certificated

telecommunications provider shall provide each affected

municipality with a copy of the report required by this

subsection.

(k) On request of the commission and to the extent available,

the report required by Subsection (j) shall specifically identify

access lines that are provided by means of resold services or

unbundled facilities to another certificated telecommunications

provider who is not an end-use customer and the identity of the

certificated telecommunications providers obtaining the resold

services or unbundled facilities to provide services to end-use

customers. A provider may not include in its monthly count of

access lines and is not required to remit a right-of-way fee to

the municipality on access lines that are resold, leased, or

otherwise provided to another certificated telecommunications

provider if the provider receives adequate proof that the

provider leasing or purchasing the access lines will include the

access lines in its monthly count and remit payment on those

access lines to the municipality.

(l) The commission may use a report required under Subsection

(j) only to verify the number of access lines that serve premises

within the municipality.

(m) Notwithstanding any other provision of this chapter, payment

by a certificated telecommunications provider that complies with

the terms of an unexpired franchise agreement or right-of-way

ordinance that applies to the provider satisfies the payment

attributable to the provider required by this chapter.

(n) A municipality may not demand or require from a certificated

telecommunications provider services, facilities, or goods

without compensation or at below-market rates.

(o) A certificated telecommunications provider shall, to the

extent required, implement commission established access line

rates not later than the 90th day after the date the commission

establishes the access line rates under this chapter.

Added by Acts 1999, 76th Leg., ch. 840, Sec. 1, eff. Sept. 1,

1999.

Sec. 283.056. MUNICIPAL AUTHORIZATIONS; PROHIBITION ON OTHER

FEES AND CHARGES. (a) A municipality may not require a

certificated telecommunications provider to:

(1) pay any compensation other than the fee authorized by

Section 283.055, including an application, permit, excavation, or

inspection fee, for the right to use a public right-of-way to

provide telecommunications services in the municipality; or

(2) provide any services or facilities for the right to use a

public right-of-way or to provide telecommunications services in

the municipality.

(b) Notwithstanding any other law or any other provision of this

chapter, a municipality may require the issuance of a

construction permit without cost to a certificated

telecommunications provider locating facilities in or on public

rights-of-way within the municipality. The terms of the permit

shall be consistent with construction permits issued to other

persons excavating in a public right-of-way.

(c) A municipality may exercise those police power-based

regulations in the management of a public right-of-way that apply

to all persons within the municipality. A municipality may

exercise police power-based regulations in the management of the

activities of certificated telecommunications providers within a

public right-of-way only to the extent that they are reasonably

necessary to protect the health, safety, and welfare of the

public. Police power-based regulation of certificated

telecommunications providers may not include activities that are

governed by this chapter or are within the sole business

discretion of the certificated telecommunications provider. In

addition, any police power-based regulation must be competitively

neutral and may not be unreasonable or discriminatory. A

municipality specifically may not impose regulations on

certificated telecommunications providers that are not authorized

by this chapter, including:

(1) requirements that particular business offices be located in

the municipality;

(2) requirements for filing reports and documents with the

municipality that are not required by state law to be filed with

the municipality and that are not related to the use of a public

right-of-way;

(3) inspection of a provider's business records except to the

extent necessary to conduct an authorized review of the provider

to ensure compliance with the access line reporting requirements

of this chapter if commenced within 90 days after the filing of a

certificated telecommunications provider's report of access

lines; and

(4) approval of transfers of ownership or control of a

provider's business, except that a municipality may require that

a provider maintain current point of contact information and

provide notice of a transfer within a reasonable time.

(d) In the exercise of its lawful regulatory authority, a

municipality shall promptly process each valid and

administratively complete application of a certificated

telecommunications provider for any permit, license, or consent

to excavate, set poles, locate lines, construct facilities, make

repairs, affect traffic flow, obtain zoning or subdivision

regulation approvals, or for other similar approvals, and shall

make every reasonable effort to not delay or unduly burden that

provider in the timely conduct of its business.

(e) If there is an emergency necessitating response work or

repair, a certificated telecommunications provider may begin that

repair or emergency response work or take any action required

under the circumstances, provided that the certificated

telecommunications provider notifies the affected municipality as

promptly as possible after beginning the work and later acquires

any approval required by a municipal ordinance applicable to

emergency response work.

(f) The compensation paid under this chapter is in lieu of any

permit, license, approval, inspection, or other similar fee or

charge, including all general business license fees customarily

assessed by a municipality for the use of a public right-of-way

against persons operating telecommunications-related businesses.

The compensation paid under this chapter constitutes full

compensation to a municipality for all of a certificated

telecommunications provider's facilities located within a public

right-of-way, including interoffice transport and other

transmission media that do not terminate at an end-use customer's

premises, even though those types of lines are not used in the

calculation of the compensation. This chapter may not be

construed to affect the ad valorem taxation of a certificated

telecommunications provider's facilities or to permit the ad

valorem taxation of a certificated telecommunication provider's

occupancy of a public right-of-way.

Added by Acts 1999, 76th Leg., ch. 840, Sec. 1, eff. Sept. 1,

1999.

Sec. 283.057. INDEMNITY. (a) Certificated telecommunications

providers shall indemnify and hold the municipality and its

officers and employees harmless against any and all claims,

lawsuits, judgments, costs, liens, losses, expenses, fees

(including reasonable attorney's fees and costs of defense),

proceedings, actions, demands, causes of action, liability, and

suits of any kind and nature, including personal or bodily injury

(including death), property damage, or other harm for which

recovery of damages is sought that is found by a court of

competent jurisdiction to be caused solely by the negligent act,

error, or omission of the certificated telecommunications

provider, any agent, officer, director, representative, employee,

affiliate, or subcontractor of the certificated

telecommunications provider, or their respective officers,

agents, employees, directors, or representatives, while

installing, repairing, or maintaining facilities in a public

right-of-way. The indemnity provided by this subsection does not

apply to any liability resulting from the negligence of the

municipality, its officers, employees, contractors, or

subcontractors. If a certificated telecommunications provider and

the municipality are found jointly liable by a court of competent

jurisdiction, liability shall be apportioned comparatively in

accordance with the laws of this state without, however, waiving

any governmental immunity available to the municipality under

state law and without waiving any defenses of the parties under

state law. This section is solely for the benefit of the

municipality and certificated telecommunications provider and

does not create or grant any rights, contractual or otherwise, to

any other person or entity.

(b) A certificated telecommunications provider or municipality

shall promptly advise the other in writing of any known claim or

demand against the certificated telecommunications provider or

the municipality related to or arising out of the certificated

telecommunications provider's activities in a public

right-of-way.

(c) Municipalities with franchise agreements or ordinances

applicable to certificated telecommunications providers in effect

under a general-use ordinance adopted before January 12, 1999,

and after July 1, 1998, and having 1.3 million access lines or

more within the municipality on September 1, 1999, may continue

to enforce the indemnity provision contained in those franchise

agreements or ordinances until the earlier of the date the

franchise agreements or ordinances expire or December 31, 2003. A

certificated telecommunications provider providing access lines

in a municipality described by this subsection is also subject to

the indemnity provided by this section.

Added by Acts 1999, 76th Leg., ch. 840, Sec. 1, eff. Sept. 1,

1999.

Sec. 283.058. ADDITIONAL COMMISSION JURISDICTION. The

commission shall have the jurisdiction over municipalities and

certificated telecommunications providers necessary to enforce

this chapter and to ensure that all other legal requirements are

enforced in a competitively neutral, non-discriminatory, and

reasonable manner.

Added by Acts 1999, 76th Leg., ch. 840, Sec. 1, eff. Sept. 1,

1999.

State Codes and Statutes

Statutes > Texas > Local-government-code > Title-9-public-buildings-and-grounds > Chapter-283-management-of-public-right-of-way-used-by-telecommunications-provider-in-municipality

LOCAL GOVERNMENT CODE

TITLE 9. PUBLIC BUILDINGS AND GROUNDS

SUBTITLE A. MUNICIPAL PUBLIC BUILDINGS AND GROUNDS

CHAPTER 283. MANAGEMENT OF PUBLIC RIGHT-OF-WAY USED BY

TELECOMMUNICATIONS PROVIDER IN MUNICIPALITY

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 283.001. STATE POLICY; PURPOSE. (a) It is the policy of

this state to:

(1) encourage competition in the provision of telecommunications

services;

(2) reduce the barriers to entry for providers of services so

that the number and types of services offered by providers

continue to increase through competition;

(3) ensure that providers of telecommunications services do not

obtain a competitive advantage or disadvantage in their ability

to obtain use of a public right-of-way within a municipality; and

(4) fairly reduce the uncertainty and litigation concerning

franchise fees.

(b) It is also the policy of this state that municipalities:

(1) retain the authority to manage a public right-of-way within

the municipality to ensure the health, safety, and welfare of the

public; and

(2) receive from certificated telecommunications providers fair

and reasonable compensation for the use of a public right-of-way

within the municipality.

(c) The purpose of this chapter is to establish a uniform method

for compensating municipalities for the use of a public

right-of-way by certificated telecommunications providers that:

(1) is administratively simple for municipalities and

telecommunications providers;

(2) is consistent with state and federal law;

(3) is competitively neutral;

(4) is nondiscriminatory;

(5) is consistent with the burdens on municipalities created by

the incursion of certificated telecommunications providers into a

public right-of-way; and

(6) provides fair and reasonable compensation for the use of a

public right-of-way.

Added by Acts 1999, 76th Leg., ch. 840, Sec. 1, eff. Sept. 1,

1999.

Sec. 283.002. DEFINITIONS. In this chapter:

(1) "Access line":

(A) means, unless the commission adopts a different definition

under Section 283.003, a unit of measurement representing:

(i) each switched transmission path of the transmission media

that is physically within a public right-of-way extended to the

end-use customer's premises within the municipality, that allows

the delivery of local exchange telephone services within a

municipality, and that is provided by means of owned facilities,

unbundled network elements or leased facilities, or resale;

(ii) each termination point or points of a nonswitched telephone

or other circuit consisting of transmission media located within

a public right-of-way connecting specific locations identified

by, and provided to, the end-use customer for delivery of

nonswitched telecommunications services within the municipality;

or

(iii) each switched transmission path within a public

right-of-way used to provide central office-based PBX-type

services for systems of any number of stations within the

municipality, and in that instance, one path shall be counted for

every 10 stations served; and

(B) may not be construed to include interoffice transport or

other transmission media that do not terminate at an end-use

customer's premises or to permit duplicate or multiple assessment

of access line rates on the provision of a single service.

(2) "Certificated telecommunications provider" means a person

who has been issued a certificate of convenience and necessity,

certificate of operating authority, or service provider

certificate of operating authority by the commission to offer

local exchange telephone service or a person who provides voice

service.

(3) "Commission" means the Public Utility Commission of Texas.

(4) "Consumer price index" means the annual revised consumer

price index for all urban consumers for Texas, as published by

the Federal Bureau of Labor Statistics.

(5) "Local exchange telephone service" has the meaning assigned

by Section 51.002, Utilities Code.

(6) "Public right-of-way" means the area on, below, or above a

public roadway, highway, street, public sidewalk, alley,

waterway, or utility easement in which the municipality has an

interest. The term does not include the airwaves above a

right-of-way with regard to wireless telecommunications.

(7) "Voice service" means voice communications services provided

through wireline facilities located at least in part in the

public right-of-way, without regard to the delivery technology,

including Internet protocol technology. The term does not

include voice service provided by a commercial mobile service

provider as defined by 47 U.S.C. Section 332(d).

Added by Acts 1999, 76th Leg., ch. 840, Sec. 1, eff. Sept. 1,

1999.

Amended by:

Acts 2005, 79th Leg., 2nd C.S., Ch.

2, Sec. 28, eff. September 7, 2005.

Sec. 283.003. COMMISSION REVIEW. (a) Not later than September

1, 2002, the commission shall determine whether changes in

technology, facilities, or competitive or market conditions

justify a modification in the commission-established categories

of access lines or, if necessary, the adoption of a definition of

"access line" provided by this section. The commission may not

begin a review authorized by this section before March 1, 2002.

(b) As part of the proceeding described by Subsection (a), and

as necessary after that proceeding, the commission by rule may

modify the definition of "access line" and the categories of

access lines as necessary to ensure competitive neutrality and

nondiscriminatory application and to maintain consistent levels

of compensation, as annually increased by growth in access lines

and consumer price index, as applicable, to the municipalities.

(c) After September 1, 2002, the commission, on its own motion,

shall make the determination required by this section at least

once every three years.

Added by Acts 1999, 76th Leg., ch. 840, Sec. 1, eff. Sept. 1,

1999.

Sec. 283.004. APPLICATION. This chapter applies only to

municipal regulations and fees imposed on and collected from

certificated telecommunications providers.

Added by Acts 1999, 76th Leg., ch. 840, Sec. 1, eff. Sept. 1,

1999.

Sec. 283.005. INFORMATION. (a) The commission may collect and

compile any information from certificated telecommunications

providers and municipalities as is necessary to implement this

chapter.

(b) The commission shall maintain the confidentiality of the

information described by Subsection (a) in accordance with

Section 52.207, Utilities Code.

(c) Information provided to municipalities under this chapter

shall be governed by confidentiality procedures established by

the commission in compliance with Section 52.207, Utilities Code.

Added by Acts 1999, 76th Leg., ch. 840, Sec. 1, eff. Sept. 1,

1999.

Sec. 283.006. FEE REQUIREMENT FOR USE OF RIGHT-OF-WAY. (a)

Notwithstanding any other law, a certificated telecommunications

provider that does not use a public right-of-way within the

municipality may not be required to pay franchise fees,

right-of-way fees or any other fee or other compensation, other

than a fee or compensation excluded from the "base amount" under

Section 283.053(a), directly to the municipality to provide local

exchange telephone service in the municipality.

(b) This section does not affect the number of access lines

counted and reported to the commission under Section 283.055.

(c) The commission shall adopt rules to determine the method of

payment and to ensure that access line fees are paid on a

competitively neutral and non-discriminatory basis by

certificated telecommunications providers that provide more

access lines than they purchase from an underlying provider of

resold services or unbundled network elements.

Added by Acts 1999, 76th Leg., ch. 840, Sec. 1, eff. Sept. 1,

1999.

SUBCHAPTER B. RIGHT-OF-WAY FEES

Sec. 283.051. RIGHT-OF-WAY FEE. (a) Notwithstanding any other

law, a certificated telecommunications provider that provides

telecommunications services within a municipality is required to

pay as compensation to a municipality for use of the public

rights-of-way in the municipality only the amount determined by

the commission under Section 283.055.

(b) This section does not affect the right of a municipality to

initiate legal action against a certificated telecommunications

provider that uses a public right-of-way to provide local

exchange telephone service within a municipality and has not

compensated the municipality in accordance with this chapter.

(c) Fees imposed under this chapter shall constitute "a

municipal fee" or "municipal fees" within the meaning of the

Utilities Code.

Added by Acts 1999, 76th Leg., ch. 840, Sec. 1, eff. Sept. 1,

1999.

Sec. 283.052. EFFECT OF PAYMENT OF RIGHT-OF-WAY FEES TO

MUNICIPALITY. (a) Subject to the requirements of Sections

283.056 and 283.057, a certificated telecommunications provider

that complies with this chapter and commission orders issued

under this chapter:

(1) may erect poles or construct conduit, cable, switches, and

related appurtenances and facilities and excavate within a public

right-of-way to provide telecommunications service; and

(2) is not subject to municipal franchise requirements.

(b) All use of a public right-of-way is nonexclusive and subject

to Section 283.056.

Added by Acts 1999, 76th Leg., ch. 840, Sec. 1, eff. Sept. 1,

1999.

Sec. 283.053. BASE AMOUNT. (a) In determining a municipality's

"base amount" under this section, pole rental fees, special

assessments, and taxes of any kind, including ad valorem or sales

and use taxes, or other compensation not related to the use of a

public right-of-way, are not included.

(b) For purposes of determining the amount of a municipality's

right-of-way fee under Section 283.055, the "base amount" for a

municipality not described by another subsection is the total

amount of revenue received by the municipality in franchise,

license, permit, and application fees and in-kind services or

facilities from certificated telecommunications providers in 1998

within the boundaries of the municipality, including all newly

annexed areas. The base amount prescribed under this subsection

shall include the municipal fee rate escalation provisions and

the value of in-kind services or facilities received in 1998 in

accordance with Subsection (f) specifically prescribed in

applicable agreements or ordinances effective or adopted by

January 12, 1999, unless the governing body of the municipality

elects otherwise. However, that additional compensation may not

become part of the base amount before it becomes effective under

the existing franchise agreement or ordinance.

(c) The base amount for a municipality located in a county with

a population of less than 25,000 or a municipality that either

did not have an effective franchise agreement or ordinance on

January 12, 1999, or was not in existence on that date shall be,

at the election of the governing body of the municipality, equal

to:

(1) an amount not greater than the statewide average fee per

line for each category of access line of the certificated

telecommunications provider with the greatest number of access

lines in that municipality, multiplied by the total number of

access lines in each category located within the boundaries of

the municipality on December 31, 1998, for a municipality in

existence on that date, or on the date of incorporation for a

municipality incorporated after that date;

(2) an amount not greater than the base amount determined for a

similarly sized municipality in the same or an adjacent county in

which the certificated telecommunications provider with the

greatest number of access lines in the municipality is the same

for each municipality; or

(3) the total amount of revenue received by the municipality in

franchise, license, permit, and application fees from all

certificated telecommunications providers in 1998.

(d) The base amount for a municipality that was involved in

litigation relating to franchise fees with one or more

certificated telecommunications providers during any part of 1998

and that, not later than December 1, 1999, repeals any ordinance

subject to dispute in the litigation, voluntarily dismisses with

prejudice any claims in the litigation for compensation, and

agrees to waive any potential claim for compensation under any

franchise agreement or ordinance expired or in existence on

September 1, 1999, is equal to, at the municipality's election:

(1) an amount not to exceed the state average access line rate

on a per category basis for the certificated telecommunications

provider with the greatest number of access lines in that

municipality multiplied by the total number of access lines

located within the boundaries of the municipality on December 31,

1998, including any newly annexed areas; or

(2) an amount not to exceed 21 percent of the total sales and

use tax revenue received by the municipality pursuant to Chapter

321, Tax Code. The amount does not include sales and use taxes

collected under:

(A) Chapter 451, 452, 453, or 454, Transportation Code, for a

mass transit authority;

(B) Chapter 504 or 505;

(C) Chapters 334 and 335, Local Government Code; or

(D) Chapters 321, 322, and 323, Tax Code, for a special

district, including health service, crime control, hospital, and

emergency service districts.

(e) A litigating municipality electing to dismiss with prejudice

its claims in the litigation and repealing any ordinance subject

to dispute in the litigation does not, by making the election,

waive any defenses it may have to claims by other parties to the

litigation. A municipality in litigation relating to franchise

fees with one or more certificated telecommunications providers

during any part of 1998 that does not make an effective election

under Subsection (d) shall be governed by Subsection (b).

(f) For the purpose of determining the base amount, in-kind

services or facilities provided to municipalities under existing

franchise agreements or ordinances by certificated

telecommunications providers shall be valued at one percent of

the total 1998 revenue from franchise, permit, license, and

application fees paid to the municipality under all applicable

telecommunications franchise agreements or ordinances, unless a

municipality can establish before the commission that those

services or facilities received by the municipality had a greater

value in 1998.

Added by Acts 1999, 76th Leg., ch. 840, Sec. 1, eff. Sept. 1,

1999.

Amended by:

Acts 2007, 80th Leg., R.S., Ch.

885, Sec. 3.18, eff. April 1, 2009.

Sec. 283.054. EXISTING FRANCHISE AGREEMENTS AND ORDINANCES. (a)

Except as otherwise provided by this chapter, this chapter does

not affect the validity of a franchise agreement or ordinance

with a certificated telecommunications provider executed before

January 12, 1999. A municipality may continue to enforce a

franchise agreement or ordinance and to collect franchise fees

and other charges under that franchise agreement or ordinance

until the date on which the agreement or ordinance expires by its

own terms or is terminated in accordance with the terms of this

section. A provider may elect to terminate a franchise agreement

or obligations under an existing ordinance as of the effective

date of the right-of-way fee rates adopted in accordance with the

commission's rules adopted under this chapter. A provider

terminating a franchise agreement or obligations under an

existing ordinance under this section shall become governed by

this chapter on the date of termination. A termination under this

subsection does not affect the calculation of the municipality's

base amount under Section 283.053. A certificated

telecommunications provider electing to terminate an existing

franchise agreement or obligations under an ordinance under this

section shall provide notice to the commission and the affected

municipality not later than December 1, 1999.

(b) If a franchise agreement or obligations under an ordinance

in a municipality expire or are terminated under Subsection (a)

before the commission has determined the amounts to be paid to a

municipality, the affected certificated telecommunications

providers operating in the municipality shall continue paying at

the rates required under the terms of the expired agreement or

ordinance until the commission's determination and the

certificated telecommunications provider's implementation of

appropriate rates under this chapter.

(c) During the period in which a franchise agreement or

ordinance described by Subsection (a) is in effect, a

certificated telecommunications provider not subject to an

existing franchise agreement or ordinance that wants to construct

facilities to offer telecommunications services in the

municipality shall pay right-of-way fees that are competitively

neutral and non-discriminatory, consistent with the charges of

the most recent agreement or ordinance between the municipality

and the certificated telecommunications provider serving the

largest number of access lines within the municipality. The

provider shall pay those fees for the duration of that agreement

or ordinance or until the right-of-way fees established by

commission rule take effect. If the existing franchise agreement

or ordinance contains a provision requiring in-kind services or

facilities, the certificated telecommunications provider not

subject to an existing franchise agreement or ordinance shall pay

an amount equal to an additional one percent of its total fees

under the applicable agreement or ordinance in lieu of any

in-kind services or facilities, if any, that otherwise are

required under the terms of the existing franchise agreement or

ordinance. However, the municipality may not require a

certificated telecommunications provider to provide any services

or facilities without compensation or at below-market rates for

the right to use a public right-of-way or to provide

telecommunications services in the municipality. On request of

the certificated telecommunications provider not subject to an

existing franchise agreement or ordinance, the commission shall

convert the compensation under the existing franchise agreement

or ordinance to a fee per access line on a competitively neutral

and non-discriminatory basis, and the certificated

telecommunications provider may elect to pay the municipality on

a fee per access line basis rather than the manner of

compensation provided under the existing franchise agreement or

ordinance.

Added by Acts 1999, 76th Leg., ch. 840, Sec. 1, eff. Sept. 1,

1999.

Sec. 283.055. DETERMINATION OF FEES BY COMMISSION. (a) Not

later than November 1, 1999, the commission shall establish not

more than three categories of access lines for statewide use.

(b) Not later than March 1, 2000, the commission shall

establish:

(1) for each municipality, rates per access line by category for

the use of the rights-of-way in that municipality; and

(2) the statewide average of those rates per access line by

category for each certificated telecommunications provider, if

necessary.

(c) The rates when applied to the total number of access lines

by category in the municipality shall be equal to the base

amount.

(d) Not later than December 1, 1999, a municipality that wants

to effect an allocation of the base amount over specific access

line categories to be assessed rates shall notify the commission

of the desired allocation. The commission shall establish an

allocation of the base amount over the categories of access lines

if a municipality does not file its proposed allocation by

December 1, 1999. A municipality may request a modification of

the commission's allocation not more than once every 24 months by

notifying the commission and all affected certificated

telecommunications providers in September of that year that the

municipality wants to change the allocation for the next calendar

year. A municipality's allocation shall be implemented unless, on

complaint by an affected certificated telecommunications

provider, the commission determines that the allocation is not

just and reasonable, is not competitively neutral, or is

discriminatory.

(e) Rates imposed under this section and the allocation among

certificated telecommunications providers must be exercised in a

competitively neutral manner, may not unduly impair competition,

must be non-discriminatory, and must comply with state and

federal law. The commission shall determine the applicable rates

for each municipality for each category, taking into account the

allocation under Subsection (d) and the type, use, and function

of access lines.

(f) Certificated telecommunications providers shall pay to the

municipality a quarterly amount calculated monthly based on the

access line rates established by the commission under this

section and the number of access lines as reflected in the

reports filed under Subsection (j). The providers shall make the

quarterly payment not later than 45 days after the end of the

quarter.

(g) Beginning 24 months after the date the commission

establishes rates per access line, the commission shall annually

adjust the rates per access line for each municipality by an

amount equal to one-half the annual change, if any, in the

consumer price index. At that time, the commission shall provide

each certificated telecommunications provider and municipality

with the adjusted monthly rates for each category of access line.

(h) On an annual basis, an affected municipality may provide

notice to the commission to decline all or any portion of any

increase in the per category access line rates.

(i) A certificated telecommunications provider may not be

required to remit a right-of-way fee to a municipality on those

access lines that have been resold, leased, or otherwise provided

to another certificated telecommunications provider, if the

underlying certificated telecommunications provider supplying

those services or facilities has been furnished with adequate

proof that the provider of services to the end-use customer will

directly remit to the municipality a right-of-way fee based on

those access lines.

(j) On a quarterly basis, each certificated telecommunications

provider shall file a report with the commission that shows the

number of access lines, including access lines by category, that

the provider has within each municipality at the end of each

month of the quarter. The provider shall include with the report

a certified statement from an authorized officer or duly

authorized representative of the provider stating that the

information contained in the report is true and correct to the

best of the officer's or representative's knowledge and belief

after inquiry. On request and subject to the confidentiality

protections of Section 283.005, each certificated

telecommunications provider shall provide each affected

municipality with a copy of the report required by this

subsection.

(k) On request of the commission and to the extent available,

the report required by Subsection (j) shall specifically identify

access lines that are provided by means of resold services or

unbundled facilities to another certificated telecommunications

provider who is not an end-use customer and the identity of the

certificated telecommunications providers obtaining the resold

services or unbundled facilities to provide services to end-use

customers. A provider may not include in its monthly count of

access lines and is not required to remit a right-of-way fee to

the municipality on access lines that are resold, leased, or

otherwise provided to another certificated telecommunications

provider if the provider receives adequate proof that the

provider leasing or purchasing the access lines will include the

access lines in its monthly count and remit payment on those

access lines to the municipality.

(l) The commission may use a report required under Subsection

(j) only to verify the number of access lines that serve premises

within the municipality.

(m) Notwithstanding any other provision of this chapter, payment

by a certificated telecommunications provider that complies with

the terms of an unexpired franchise agreement or right-of-way

ordinance that applies to the provider satisfies the payment

attributable to the provider required by this chapter.

(n) A municipality may not demand or require from a certificated

telecommunications provider services, facilities, or goods

without compensation or at below-market rates.

(o) A certificated telecommunications provider shall, to the

extent required, implement commission established access line

rates not later than the 90th day after the date the commission

establishes the access line rates under this chapter.

Added by Acts 1999, 76th Leg., ch. 840, Sec. 1, eff. Sept. 1,

1999.

Sec. 283.056. MUNICIPAL AUTHORIZATIONS; PROHIBITION ON OTHER

FEES AND CHARGES. (a) A municipality may not require a

certificated telecommunications provider to:

(1) pay any compensation other than the fee authorized by

Section 283.055, including an application, permit, excavation, or

inspection fee, for the right to use a public right-of-way to

provide telecommunications services in the municipality; or

(2) provide any services or facilities for the right to use a

public right-of-way or to provide telecommunications services in

the municipality.

(b) Notwithstanding any other law or any other provision of this

chapter, a municipality may require the issuance of a

construction permit without cost to a certificated

telecommunications provider locating facilities in or on public

rights-of-way within the municipality. The terms of the permit

shall be consistent with construction permits issued to other

persons excavating in a public right-of-way.

(c) A municipality may exercise those police power-based

regulations in the management of a public right-of-way that apply

to all persons within the municipality. A municipality may

exercise police power-based regulations in the management of the

activities of certificated telecommunications providers within a

public right-of-way only to the extent that they are reasonably

necessary to protect the health, safety, and welfare of the

public. Police power-based regulation of certificated

telecommunications providers may not include activities that are

governed by this chapter or are within the sole business

discretion of the certificated telecommunications provider. In

addition, any police power-based regulation must be competitively

neutral and may not be unreasonable or discriminatory. A

municipality specifically may not impose regulations on

certificated telecommunications providers that are not authorized

by this chapter, including:

(1) requirements that particular business offices be located in

the municipality;

(2) requirements for filing reports and documents with the

municipality that are not required by state law to be filed with

the municipality and that are not related to the use of a public

right-of-way;

(3) inspection of a provider's business records except to the

extent necessary to conduct an authorized review of the provider

to ensure compliance with the access line reporting requirements

of this chapter if commenced within 90 days after the filing of a

certificated telecommunications provider's report of access

lines; and

(4) approval of transfers of ownership or control of a

provider's business, except that a municipality may require that

a provider maintain current point of contact information and

provide notice of a transfer within a reasonable time.

(d) In the exercise of its lawful regulatory authority, a

municipality shall promptly process each valid and

administratively complete application of a certificated

telecommunications provider for any permit, license, or consent

to excavate, set poles, locate lines, construct facilities, make

repairs, affect traffic flow, obtain zoning or subdivision

regulation approvals, or for other similar approvals, and shall

make every reasonable effort to not delay or unduly burden that

provider in the timely conduct of its business.

(e) If there is an emergency necessitating response work or

repair, a certificated telecommunications provider may begin that

repair or emergency response work or take any action required

under the circumstances, provided that the certificated

telecommunications provider notifies the affected municipality as

promptly as possible after beginning the work and later acquires

any approval required by a municipal ordinance applicable to

emergency response work.

(f) The compensation paid under this chapter is in lieu of any

permit, license, approval, inspection, or other similar fee or

charge, including all general business license fees customarily

assessed by a municipality for the use of a public right-of-way

against persons operating telecommunications-related businesses.

The compensation paid under this chapter constitutes full

compensation to a municipality for all of a certificated

telecommunications provider's facilities located within a public

right-of-way, including interoffice transport and other

transmission media that do not terminate at an end-use customer's

premises, even though those types of lines are not used in the

calculation of the compensation. This chapter may not be

construed to affect the ad valorem taxation of a certificated

telecommunications provider's facilities or to permit the ad

valorem taxation of a certificated telecommunication provider's

occupancy of a public right-of-way.

Added by Acts 1999, 76th Leg., ch. 840, Sec. 1, eff. Sept. 1,

1999.

Sec. 283.057. INDEMNITY. (a) Certificated telecommunications

providers shall indemnify and hold the municipality and its

officers and employees harmless against any and all claims,

lawsuits, judgments, costs, liens, losses, expenses, fees

(including reasonable attorney's fees and costs of defense),

proceedings, actions, demands, causes of action, liability, and

suits of any kind and nature, including personal or bodily injury

(including death), property damage, or other harm for which

recovery of damages is sought that is found by a court of

competent jurisdiction to be caused solely by the negligent act,

error, or omission of the certificated telecommunications

provider, any agent, officer, director, representative, employee,

affiliate, or subcontractor of the certificated

telecommunications provider, or their respective officers,

agents, employees, directors, or representatives, while

installing, repairing, or maintaining facilities in a public

right-of-way. The indemnity provided by this subsection does not

apply to any liability resulting from the negligence of the

municipality, its officers, employees, contractors, or

subcontractors. If a certificated telecommunications provider and

the municipality are found jointly liable by a court of competent

jurisdiction, liability shall be apportioned comparatively in

accordance with the laws of this state without, however, waiving

any governmental immunity available to the municipality under

state law and without waiving any defenses of the parties under

state law. This section is solely for the benefit of the

municipality and certificated telecommunications provider and

does not create or grant any rights, contractual or otherwise, to

any other person or entity.

(b) A certificated telecommunications provider or municipality

shall promptly advise the other in writing of any known claim or

demand against the certificated telecommunications provider or

the municipality related to or arising out of the certificated

telecommunications provider's activities in a public

right-of-way.

(c) Municipalities with franchise agreements or ordinances

applicable to certificated telecommunications providers in effect

under a general-use ordinance adopted before January 12, 1999,

and after July 1, 1998, and having 1.3 million access lines or

more within the municipality on September 1, 1999, may continue

to enforce the indemnity provision contained in those franchise

agreements or ordinances until the earlier of the date the

franchise agreements or ordinances expire or December 31, 2003. A

certificated telecommunications provider providing access lines

in a municipality described by this subsection is also subject to

the indemnity provided by this section.

Added by Acts 1999, 76th Leg., ch. 840, Sec. 1, eff. Sept. 1,

1999.

Sec. 283.058. ADDITIONAL COMMISSION JURISDICTION. The

commission shall have the jurisdiction over municipalities and

certificated telecommunications providers necessary to enforce

this chapter and to ensure that all other legal requirements are

enforced in a competitively neutral, non-discriminatory, and

reasonable manner.

Added by Acts 1999, 76th Leg., ch. 840, Sec. 1, eff. Sept. 1,

1999.


State Codes and Statutes

State Codes and Statutes

Statutes > Texas > Local-government-code > Title-9-public-buildings-and-grounds > Chapter-283-management-of-public-right-of-way-used-by-telecommunications-provider-in-municipality

LOCAL GOVERNMENT CODE

TITLE 9. PUBLIC BUILDINGS AND GROUNDS

SUBTITLE A. MUNICIPAL PUBLIC BUILDINGS AND GROUNDS

CHAPTER 283. MANAGEMENT OF PUBLIC RIGHT-OF-WAY USED BY

TELECOMMUNICATIONS PROVIDER IN MUNICIPALITY

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 283.001. STATE POLICY; PURPOSE. (a) It is the policy of

this state to:

(1) encourage competition in the provision of telecommunications

services;

(2) reduce the barriers to entry for providers of services so

that the number and types of services offered by providers

continue to increase through competition;

(3) ensure that providers of telecommunications services do not

obtain a competitive advantage or disadvantage in their ability

to obtain use of a public right-of-way within a municipality; and

(4) fairly reduce the uncertainty and litigation concerning

franchise fees.

(b) It is also the policy of this state that municipalities:

(1) retain the authority to manage a public right-of-way within

the municipality to ensure the health, safety, and welfare of the

public; and

(2) receive from certificated telecommunications providers fair

and reasonable compensation for the use of a public right-of-way

within the municipality.

(c) The purpose of this chapter is to establish a uniform method

for compensating municipalities for the use of a public

right-of-way by certificated telecommunications providers that:

(1) is administratively simple for municipalities and

telecommunications providers;

(2) is consistent with state and federal law;

(3) is competitively neutral;

(4) is nondiscriminatory;

(5) is consistent with the burdens on municipalities created by

the incursion of certificated telecommunications providers into a

public right-of-way; and

(6) provides fair and reasonable compensation for the use of a

public right-of-way.

Added by Acts 1999, 76th Leg., ch. 840, Sec. 1, eff. Sept. 1,

1999.

Sec. 283.002. DEFINITIONS. In this chapter:

(1) "Access line":

(A) means, unless the commission adopts a different definition

under Section 283.003, a unit of measurement representing:

(i) each switched transmission path of the transmission media

that is physically within a public right-of-way extended to the

end-use customer's premises within the municipality, that allows

the delivery of local exchange telephone services within a

municipality, and that is provided by means of owned facilities,

unbundled network elements or leased facilities, or resale;

(ii) each termination point or points of a nonswitched telephone

or other circuit consisting of transmission media located within

a public right-of-way connecting specific locations identified

by, and provided to, the end-use customer for delivery of

nonswitched telecommunications services within the municipality;

or

(iii) each switched transmission path within a public

right-of-way used to provide central office-based PBX-type

services for systems of any number of stations within the

municipality, and in that instance, one path shall be counted for

every 10 stations served; and

(B) may not be construed to include interoffice transport or

other transmission media that do not terminate at an end-use

customer's premises or to permit duplicate or multiple assessment

of access line rates on the provision of a single service.

(2) "Certificated telecommunications provider" means a person

who has been issued a certificate of convenience and necessity,

certificate of operating authority, or service provider

certificate of operating authority by the commission to offer

local exchange telephone service or a person who provides voice

service.

(3) "Commission" means the Public Utility Commission of Texas.

(4) "Consumer price index" means the annual revised consumer

price index for all urban consumers for Texas, as published by

the Federal Bureau of Labor Statistics.

(5) "Local exchange telephone service" has the meaning assigned

by Section 51.002, Utilities Code.

(6) "Public right-of-way" means the area on, below, or above a

public roadway, highway, street, public sidewalk, alley,

waterway, or utility easement in which the municipality has an

interest. The term does not include the airwaves above a

right-of-way with regard to wireless telecommunications.

(7) "Voice service" means voice communications services provided

through wireline facilities located at least in part in the

public right-of-way, without regard to the delivery technology,

including Internet protocol technology. The term does not

include voice service provided by a commercial mobile service

provider as defined by 47 U.S.C. Section 332(d).

Added by Acts 1999, 76th Leg., ch. 840, Sec. 1, eff. Sept. 1,

1999.

Amended by:

Acts 2005, 79th Leg., 2nd C.S., Ch.

2, Sec. 28, eff. September 7, 2005.

Sec. 283.003. COMMISSION REVIEW. (a) Not later than September

1, 2002, the commission shall determine whether changes in

technology, facilities, or competitive or market conditions

justify a modification in the commission-established categories

of access lines or, if necessary, the adoption of a definition of

"access line" provided by this section. The commission may not

begin a review authorized by this section before March 1, 2002.

(b) As part of the proceeding described by Subsection (a), and

as necessary after that proceeding, the commission by rule may

modify the definition of "access line" and the categories of

access lines as necessary to ensure competitive neutrality and

nondiscriminatory application and to maintain consistent levels

of compensation, as annually increased by growth in access lines

and consumer price index, as applicable, to the municipalities.

(c) After September 1, 2002, the commission, on its own motion,

shall make the determination required by this section at least

once every three years.

Added by Acts 1999, 76th Leg., ch. 840, Sec. 1, eff. Sept. 1,

1999.

Sec. 283.004. APPLICATION. This chapter applies only to

municipal regulations and fees imposed on and collected from

certificated telecommunications providers.

Added by Acts 1999, 76th Leg., ch. 840, Sec. 1, eff. Sept. 1,

1999.

Sec. 283.005. INFORMATION. (a) The commission may collect and

compile any information from certificated telecommunications

providers and municipalities as is necessary to implement this

chapter.

(b) The commission shall maintain the confidentiality of the

information described by Subsection (a) in accordance with

Section 52.207, Utilities Code.

(c) Information provided to municipalities under this chapter

shall be governed by confidentiality procedures established by

the commission in compliance with Section 52.207, Utilities Code.

Added by Acts 1999, 76th Leg., ch. 840, Sec. 1, eff. Sept. 1,

1999.

Sec. 283.006. FEE REQUIREMENT FOR USE OF RIGHT-OF-WAY. (a)

Notwithstanding any other law, a certificated telecommunications

provider that does not use a public right-of-way within the

municipality may not be required to pay franchise fees,

right-of-way fees or any other fee or other compensation, other

than a fee or compensation excluded from the "base amount" under

Section 283.053(a), directly to the municipality to provide local

exchange telephone service in the municipality.

(b) This section does not affect the number of access lines

counted and reported to the commission under Section 283.055.

(c) The commission shall adopt rules to determine the method of

payment and to ensure that access line fees are paid on a

competitively neutral and non-discriminatory basis by

certificated telecommunications providers that provide more

access lines than they purchase from an underlying provider of

resold services or unbundled network elements.

Added by Acts 1999, 76th Leg., ch. 840, Sec. 1, eff. Sept. 1,

1999.

SUBCHAPTER B. RIGHT-OF-WAY FEES

Sec. 283.051. RIGHT-OF-WAY FEE. (a) Notwithstanding any other

law, a certificated telecommunications provider that provides

telecommunications services within a municipality is required to

pay as compensation to a municipality for use of the public

rights-of-way in the municipality only the amount determined by

the commission under Section 283.055.

(b) This section does not affect the right of a municipality to

initiate legal action against a certificated telecommunications

provider that uses a public right-of-way to provide local

exchange telephone service within a municipality and has not

compensated the municipality in accordance with this chapter.

(c) Fees imposed under this chapter shall constitute "a

municipal fee" or "municipal fees" within the meaning of the

Utilities Code.

Added by Acts 1999, 76th Leg., ch. 840, Sec. 1, eff. Sept. 1,

1999.

Sec. 283.052. EFFECT OF PAYMENT OF RIGHT-OF-WAY FEES TO

MUNICIPALITY. (a) Subject to the requirements of Sections

283.056 and 283.057, a certificated telecommunications provider

that complies with this chapter and commission orders issued

under this chapter:

(1) may erect poles or construct conduit, cable, switches, and

related appurtenances and facilities and excavate within a public

right-of-way to provide telecommunications service; and

(2) is not subject to municipal franchise requirements.

(b) All use of a public right-of-way is nonexclusive and subject

to Section 283.056.

Added by Acts 1999, 76th Leg., ch. 840, Sec. 1, eff. Sept. 1,

1999.

Sec. 283.053. BASE AMOUNT. (a) In determining a municipality's

"base amount" under this section, pole rental fees, special

assessments, and taxes of any kind, including ad valorem or sales

and use taxes, or other compensation not related to the use of a

public right-of-way, are not included.

(b) For purposes of determining the amount of a municipality's

right-of-way fee under Section 283.055, the "base amount" for a

municipality not described by another subsection is the total

amount of revenue received by the municipality in franchise,

license, permit, and application fees and in-kind services or

facilities from certificated telecommunications providers in 1998

within the boundaries of the municipality, including all newly

annexed areas. The base amount prescribed under this subsection

shall include the municipal fee rate escalation provisions and

the value of in-kind services or facilities received in 1998 in

accordance with Subsection (f) specifically prescribed in

applicable agreements or ordinances effective or adopted by

January 12, 1999, unless the governing body of the municipality

elects otherwise. However, that additional compensation may not

become part of the base amount before it becomes effective under

the existing franchise agreement or ordinance.

(c) The base amount for a municipality located in a county with

a population of less than 25,000 or a municipality that either

did not have an effective franchise agreement or ordinance on

January 12, 1999, or was not in existence on that date shall be,

at the election of the governing body of the municipality, equal

to:

(1) an amount not greater than the statewide average fee per

line for each category of access line of the certificated

telecommunications provider with the greatest number of access

lines in that municipality, multiplied by the total number of

access lines in each category located within the boundaries of

the municipality on December 31, 1998, for a municipality in

existence on that date, or on the date of incorporation for a

municipality incorporated after that date;

(2) an amount not greater than the base amount determined for a

similarly sized municipality in the same or an adjacent county in

which the certificated telecommunications provider with the

greatest number of access lines in the municipality is the same

for each municipality; or

(3) the total amount of revenue received by the municipality in

franchise, license, permit, and application fees from all

certificated telecommunications providers in 1998.

(d) The base amount for a municipality that was involved in

litigation relating to franchise fees with one or more

certificated telecommunications providers during any part of 1998

and that, not later than December 1, 1999, repeals any ordinance

subject to dispute in the litigation, voluntarily dismisses with

prejudice any claims in the litigation for compensation, and

agrees to waive any potential claim for compensation under any

franchise agreement or ordinance expired or in existence on

September 1, 1999, is equal to, at the municipality's election:

(1) an amount not to exceed the state average access line rate

on a per category basis for the certificated telecommunications

provider with the greatest number of access lines in that

municipality multiplied by the total number of access lines

located within the boundaries of the municipality on December 31,

1998, including any newly annexed areas; or

(2) an amount not to exceed 21 percent of the total sales and

use tax revenue received by the municipality pursuant to Chapter

321, Tax Code. The amount does not include sales and use taxes

collected under:

(A) Chapter 451, 452, 453, or 454, Transportation Code, for a

mass transit authority;

(B) Chapter 504 or 505;

(C) Chapters 334 and 335, Local Government Code; or

(D) Chapters 321, 322, and 323, Tax Code, for a special

district, including health service, crime control, hospital, and

emergency service districts.

(e) A litigating municipality electing to dismiss with prejudice

its claims in the litigation and repealing any ordinance subject

to dispute in the litigation does not, by making the election,

waive any defenses it may have to claims by other parties to the

litigation. A municipality in litigation relating to franchise

fees with one or more certificated telecommunications providers

during any part of 1998 that does not make an effective election

under Subsection (d) shall be governed by Subsection (b).

(f) For the purpose of determining the base amount, in-kind

services or facilities provided to municipalities under existing

franchise agreements or ordinances by certificated

telecommunications providers shall be valued at one percent of

the total 1998 revenue from franchise, permit, license, and

application fees paid to the municipality under all applicable

telecommunications franchise agreements or ordinances, unless a

municipality can establish before the commission that those

services or facilities received by the municipality had a greater

value in 1998.

Added by Acts 1999, 76th Leg., ch. 840, Sec. 1, eff. Sept. 1,

1999.

Amended by:

Acts 2007, 80th Leg., R.S., Ch.

885, Sec. 3.18, eff. April 1, 2009.

Sec. 283.054. EXISTING FRANCHISE AGREEMENTS AND ORDINANCES. (a)

Except as otherwise provided by this chapter, this chapter does

not affect the validity of a franchise agreement or ordinance

with a certificated telecommunications provider executed before

January 12, 1999. A municipality may continue to enforce a

franchise agreement or ordinance and to collect franchise fees

and other charges under that franchise agreement or ordinance

until the date on which the agreement or ordinance expires by its

own terms or is terminated in accordance with the terms of this

section. A provider may elect to terminate a franchise agreement

or obligations under an existing ordinance as of the effective

date of the right-of-way fee rates adopted in accordance with the

commission's rules adopted under this chapter. A provider

terminating a franchise agreement or obligations under an

existing ordinance under this section shall become governed by

this chapter on the date of termination. A termination under this

subsection does not affect the calculation of the municipality's

base amount under Section 283.053. A certificated

telecommunications provider electing to terminate an existing

franchise agreement or obligations under an ordinance under this

section shall provide notice to the commission and the affected

municipality not later than December 1, 1999.

(b) If a franchise agreement or obligations under an ordinance

in a municipality expire or are terminated under Subsection (a)

before the commission has determined the amounts to be paid to a

municipality, the affected certificated telecommunications

providers operating in the municipality shall continue paying at

the rates required under the terms of the expired agreement or

ordinance until the commission's determination and the

certificated telecommunications provider's implementation of

appropriate rates under this chapter.

(c) During the period in which a franchise agreement or

ordinance described by Subsection (a) is in effect, a

certificated telecommunications provider not subject to an

existing franchise agreement or ordinance that wants to construct

facilities to offer telecommunications services in the

municipality shall pay right-of-way fees that are competitively

neutral and non-discriminatory, consistent with the charges of

the most recent agreement or ordinance between the municipality

and the certificated telecommunications provider serving the

largest number of access lines within the municipality. The

provider shall pay those fees for the duration of that agreement

or ordinance or until the right-of-way fees established by

commission rule take effect. If the existing franchise agreement

or ordinance contains a provision requiring in-kind services or

facilities, the certificated telecommunications provider not

subject to an existing franchise agreement or ordinance shall pay

an amount equal to an additional one percent of its total fees

under the applicable agreement or ordinance in lieu of any

in-kind services or facilities, if any, that otherwise are

required under the terms of the existing franchise agreement or

ordinance. However, the municipality may not require a

certificated telecommunications provider to provide any services

or facilities without compensation or at below-market rates for

the right to use a public right-of-way or to provide

telecommunications services in the municipality. On request of

the certificated telecommunications provider not subject to an

existing franchise agreement or ordinance, the commission shall

convert the compensation under the existing franchise agreement

or ordinance to a fee per access line on a competitively neutral

and non-discriminatory basis, and the certificated

telecommunications provider may elect to pay the municipality on

a fee per access line basis rather than the manner of

compensation provided under the existing franchise agreement or

ordinance.

Added by Acts 1999, 76th Leg., ch. 840, Sec. 1, eff. Sept. 1,

1999.

Sec. 283.055. DETERMINATION OF FEES BY COMMISSION. (a) Not

later than November 1, 1999, the commission shall establish not

more than three categories of access lines for statewide use.

(b) Not later than March 1, 2000, the commission shall

establish:

(1) for each municipality, rates per access line by category for

the use of the rights-of-way in that municipality; and

(2) the statewide average of those rates per access line by

category for each certificated telecommunications provider, if

necessary.

(c) The rates when applied to the total number of access lines

by category in the municipality shall be equal to the base

amount.

(d) Not later than December 1, 1999, a municipality that wants

to effect an allocation of the base amount over specific access

line categories to be assessed rates shall notify the commission

of the desired allocation. The commission shall establish an

allocation of the base amount over the categories of access lines

if a municipality does not file its proposed allocation by

December 1, 1999. A municipality may request a modification of

the commission's allocation not more than once every 24 months by

notifying the commission and all affected certificated

telecommunications providers in September of that year that the

municipality wants to change the allocation for the next calendar

year. A municipality's allocation shall be implemented unless, on

complaint by an affected certificated telecommunications

provider, the commission determines that the allocation is not

just and reasonable, is not competitively neutral, or is

discriminatory.

(e) Rates imposed under this section and the allocation among

certificated telecommunications providers must be exercised in a

competitively neutral manner, may not unduly impair competition,

must be non-discriminatory, and must comply with state and

federal law. The commission shall determine the applicable rates

for each municipality for each category, taking into account the

allocation under Subsection (d) and the type, use, and function

of access lines.

(f) Certificated telecommunications providers shall pay to the

municipality a quarterly amount calculated monthly based on the

access line rates established by the commission under this

section and the number of access lines as reflected in the

reports filed under Subsection (j). The providers shall make the

quarterly payment not later than 45 days after the end of the

quarter.

(g) Beginning 24 months after the date the commission

establishes rates per access line, the commission shall annually

adjust the rates per access line for each municipality by an

amount equal to one-half the annual change, if any, in the

consumer price index. At that time, the commission shall provide

each certificated telecommunications provider and municipality

with the adjusted monthly rates for each category of access line.

(h) On an annual basis, an affected municipality may provide

notice to the commission to decline all or any portion of any

increase in the per category access line rates.

(i) A certificated telecommunications provider may not be

required to remit a right-of-way fee to a municipality on those

access lines that have been resold, leased, or otherwise provided

to another certificated telecommunications provider, if the

underlying certificated telecommunications provider supplying

those services or facilities has been furnished with adequate

proof that the provider of services to the end-use customer will

directly remit to the municipality a right-of-way fee based on

those access lines.

(j) On a quarterly basis, each certificated telecommunications

provider shall file a report with the commission that shows the

number of access lines, including access lines by category, that

the provider has within each municipality at the end of each

month of the quarter. The provider shall include with the report

a certified statement from an authorized officer or duly

authorized representative of the provider stating that the

information contained in the report is true and correct to the

best of the officer's or representative's knowledge and belief

after inquiry. On request and subject to the confidentiality

protections of Section 283.005, each certificated

telecommunications provider shall provide each affected

municipality with a copy of the report required by this

subsection.

(k) On request of the commission and to the extent available,

the report required by Subsection (j) shall specifically identify

access lines that are provided by means of resold services or

unbundled facilities to another certificated telecommunications

provider who is not an end-use customer and the identity of the

certificated telecommunications providers obtaining the resold

services or unbundled facilities to provide services to end-use

customers. A provider may not include in its monthly count of

access lines and is not required to remit a right-of-way fee to

the municipality on access lines that are resold, leased, or

otherwise provided to another certificated telecommunications

provider if the provider receives adequate proof that the

provider leasing or purchasing the access lines will include the

access lines in its monthly count and remit payment on those

access lines to the municipality.

(l) The commission may use a report required under Subsection

(j) only to verify the number of access lines that serve premises

within the municipality.

(m) Notwithstanding any other provision of this chapter, payment

by a certificated telecommunications provider that complies with

the terms of an unexpired franchise agreement or right-of-way

ordinance that applies to the provider satisfies the payment

attributable to the provider required by this chapter.

(n) A municipality may not demand or require from a certificated

telecommunications provider services, facilities, or goods

without compensation or at below-market rates.

(o) A certificated telecommunications provider shall, to the

extent required, implement commission established access line

rates not later than the 90th day after the date the commission

establishes the access line rates under this chapter.

Added by Acts 1999, 76th Leg., ch. 840, Sec. 1, eff. Sept. 1,

1999.

Sec. 283.056. MUNICIPAL AUTHORIZATIONS; PROHIBITION ON OTHER

FEES AND CHARGES. (a) A municipality may not require a

certificated telecommunications provider to:

(1) pay any compensation other than the fee authorized by

Section 283.055, including an application, permit, excavation, or

inspection fee, for the right to use a public right-of-way to

provide telecommunications services in the municipality; or

(2) provide any services or facilities for the right to use a

public right-of-way or to provide telecommunications services in

the municipality.

(b) Notwithstanding any other law or any other provision of this

chapter, a municipality may require the issuance of a

construction permit without cost to a certificated

telecommunications provider locating facilities in or on public

rights-of-way within the municipality. The terms of the permit

shall be consistent with construction permits issued to other

persons excavating in a public right-of-way.

(c) A municipality may exercise those police power-based

regulations in the management of a public right-of-way that apply

to all persons within the municipality. A municipality may

exercise police power-based regulations in the management of the

activities of certificated telecommunications providers within a

public right-of-way only to the extent that they are reasonably

necessary to protect the health, safety, and welfare of the

public. Police power-based regulation of certificated

telecommunications providers may not include activities that are

governed by this chapter or are within the sole business

discretion of the certificated telecommunications provider. In

addition, any police power-based regulation must be competitively

neutral and may not be unreasonable or discriminatory. A

municipality specifically may not impose regulations on

certificated telecommunications providers that are not authorized

by this chapter, including:

(1) requirements that particular business offices be located in

the municipality;

(2) requirements for filing reports and documents with the

municipality that are not required by state law to be filed with

the municipality and that are not related to the use of a public

right-of-way;

(3) inspection of a provider's business records except to the

extent necessary to conduct an authorized review of the provider

to ensure compliance with the access line reporting requirements

of this chapter if commenced within 90 days after the filing of a

certificated telecommunications provider's report of access

lines; and

(4) approval of transfers of ownership or control of a

provider's business, except that a municipality may require that

a provider maintain current point of contact information and

provide notice of a transfer within a reasonable time.

(d) In the exercise of its lawful regulatory authority, a

municipality shall promptly process each valid and

administratively complete application of a certificated

telecommunications provider for any permit, license, or consent

to excavate, set poles, locate lines, construct facilities, make

repairs, affect traffic flow, obtain zoning or subdivision

regulation approvals, or for other similar approvals, and shall

make every reasonable effort to not delay or unduly burden that

provider in the timely conduct of its business.

(e) If there is an emergency necessitating response work or

repair, a certificated telecommunications provider may begin that

repair or emergency response work or take any action required

under the circumstances, provided that the certificated

telecommunications provider notifies the affected municipality as

promptly as possible after beginning the work and later acquires

any approval required by a municipal ordinance applicable to

emergency response work.

(f) The compensation paid under this chapter is in lieu of any

permit, license, approval, inspection, or other similar fee or

charge, including all general business license fees customarily

assessed by a municipality for the use of a public right-of-way

against persons operating telecommunications-related businesses.

The compensation paid under this chapter constitutes full

compensation to a municipality for all of a certificated

telecommunications provider's facilities located within a public

right-of-way, including interoffice transport and other

transmission media that do not terminate at an end-use customer's

premises, even though those types of lines are not used in the

calculation of the compensation. This chapter may not be

construed to affect the ad valorem taxation of a certificated

telecommunications provider's facilities or to permit the ad

valorem taxation of a certificated telecommunication provider's

occupancy of a public right-of-way.

Added by Acts 1999, 76th Leg., ch. 840, Sec. 1, eff. Sept. 1,

1999.

Sec. 283.057. INDEMNITY. (a) Certificated telecommunications

providers shall indemnify and hold the municipality and its

officers and employees harmless against any and all claims,

lawsuits, judgments, costs, liens, losses, expenses, fees

(including reasonable attorney's fees and costs of defense),

proceedings, actions, demands, causes of action, liability, and

suits of any kind and nature, including personal or bodily injury

(including death), property damage, or other harm for which

recovery of damages is sought that is found by a court of

competent jurisdiction to be caused solely by the negligent act,

error, or omission of the certificated telecommunications

provider, any agent, officer, director, representative, employee,

affiliate, or subcontractor of the certificated

telecommunications provider, or their respective officers,

agents, employees, directors, or representatives, while

installing, repairing, or maintaining facilities in a public

right-of-way. The indemnity provided by this subsection does not

apply to any liability resulting from the negligence of the

municipality, its officers, employees, contractors, or

subcontractors. If a certificated telecommunications provider and

the municipality are found jointly liable by a court of competent

jurisdiction, liability shall be apportioned comparatively in

accordance with the laws of this state without, however, waiving

any governmental immunity available to the municipality under

state law and without waiving any defenses of the parties under

state law. This section is solely for the benefit of the

municipality and certificated telecommunications provider and

does not create or grant any rights, contractual or otherwise, to

any other person or entity.

(b) A certificated telecommunications provider or municipality

shall promptly advise the other in writing of any known claim or

demand against the certificated telecommunications provider or

the municipality related to or arising out of the certificated

telecommunications provider's activities in a public

right-of-way.

(c) Municipalities with franchise agreements or ordinances

applicable to certificated telecommunications providers in effect

under a general-use ordinance adopted before January 12, 1999,

and after July 1, 1998, and having 1.3 million access lines or

more within the municipality on September 1, 1999, may continue

to enforce the indemnity provision contained in those franchise

agreements or ordinances until the earlier of the date the

franchise agreements or ordinances expire or December 31, 2003. A

certificated telecommunications provider providing access lines

in a municipality described by this subsection is also subject to

the indemnity provided by this section.

Added by Acts 1999, 76th Leg., ch. 840, Sec. 1, eff. Sept. 1,

1999.

Sec. 283.058. ADDITIONAL COMMISSION JURISDICTION. The

commission shall have the jurisdiction over municipalities and

certificated telecommunications providers necessary to enforce

this chapter and to ensure that all other legal requirements are

enforced in a competitively neutral, non-discriminatory, and

reasonable manner.

Added by Acts 1999, 76th Leg., ch. 840, Sec. 1, eff. Sept. 1,

1999.