The measure was included in a larger bill that extends the life of the state's Public Utilities Commission, a tactic that attracted opposition from some lawmakers who said it was misplaced. Yet in the end, the bill's sponsor, who had suffered several setbacks on his way to passing the bill, won.
"It
will no longer be a little monopoly that just gets more expensive every year," said Rep. Phil King, R-Weatherford.The bill allows telephone companies such as SBC and Verizon to obtain a single, statewide franchise to provide TV service over their phone lines.
After several hours of debate on the bill, lawmakers registered their approval with a nonrecorded voice vote. If the bill passes another reading in the House today, it goes to the Senate, where senators could agree to the House's amendments, vote to seek a compromise, or kill the bill by rejecting the changes.
Cable companies, which have opposed the legislation with their own television campaigns, currently negotiate franchise agreements with individual cities.
Mr. King overcame efforts to strip the cable provision from the bill. Rep. Burt Solomons, R-Carrollton, said Mr. King grafted a "major state policy change" to a bill that had nothing to do with telecommunications.
"You were insistent on having your special-interest language ... in it," Mr. Solomons said.
Mr. King said the change would benefit consumers by leading to lower prices and corporate investments that create jobs. He said it would end the anachronism of cities having a say in what channels cable companies offer.
"It is not a utility, like making sure everyone has electricity or water," he said. "This is entertainment, and it's just not the city's place to regulate."
Mr. King said cities would still get the same amount of revenue from cable providers. Cable providers would pay to cities a fee equal to 5 percent of their gross revenues.
Verizon hailed passage of the bill, saying it creates the opportunity for competition.
Mr. King said he was hopeful that the Senate would pass the bill, but he did not suggest the votes are there.
Separately, the House approved a Senate bill that increases oversight of the state's electricity grid operator, ERCOT. A Williamson County grand jury indicted six former ERCOT managers and contractors in January for billing the operator over $2 million for work that was never done.
That bill, by Sen. Troy Fraser, R-Horseshoe Bay, grants the Public Utilities Commission complete authority to oversee the operator's budget and finances.
