Legislation Further Reducing the City's Franchise Fee Revenue Set for May 2 Hearing in Texas House Committee

Senate Bill 924 by Sen. Hancock will be considered in a Texas House Subcommittee on Telecommunications & Broadband meeting on Friday, May 2. The legislation seeks to redefine some telecommunication services – chiefly, streaming services such as Netflix or Hulu – as not meeting the definition of services that must pay franchise fees.

Irving and several other cities sued to recover fees from streaming services delivered by cable and internet service providers. The court case is pending, but if SB 924 becomes law, it would cancel further consideration of the lawsuit.

Additionally, the legislation eliminates the requirement that services delivered over the internet must pay franchise fees. Most cable providers now deliver some of their services over the internet. Based on the definition provided in SB 924, the legislation would likely eliminate these franchise fees as well.

In 2021, cable providers were successful in persuading state legislators to approve changes that reduced some of their franchise fees. If SB 924 passes, it would mark the second time in three sessions that legislators have reduced local government revenue from telecommunications services.

The City of Irving estimates the city would lose as much as $500,000 per year if SB 924 passes. Current estimates show a potential $1 million loss over the most recent two-year period, including the current fiscal year. City Manager Chris Hillman sent committee chairman Rep. Rafael Anchía a letter opposing the bill on April 30.

To comment on this legislation, contact one of the following members:

Bill Sponsors

SB 924

Sen. Kelly Hancock (R-District 9)

(512) 463-0109 | kelly.hancock@senate.texas.gov

Texas House Subcommittee on Telecommunications & Broadband

Chair: Rep. Rafael Anchía (D-District 103)

(512) 463-0746 | rafael.anchia@house.texas.gov

Vice Chair: Rep. Will Metcalf (R-District 16)

(512) 463-0726 | will.metcalf@house.texas.gov

Members:

Rep. Ana Hernandez (D-District 143)

(512) 463-0614 | ana.hernandez@house.texas.gov

Rep. Lacey Hull (R-District 138)

(512) 463-0727 | lacey.hull@house.texas.gov

Rep. John McQueeney (R-District 97)

(512) 463-0608 | john.mcqueeney@house.texas.gov

The Irving Legislative Delegation

Rep. Rafael Anchía (D-District 103)

(512) 463-0746 | rafael.anchia@house.texas.gov

Rep. Cassandra Garcia Hernandez (D-District 115)

(512) 463-0468 | staff contact: fawaz.anwar@house.texas.gov

Rep. Terry Meza (D-District 105)

(512) 463-0641 | terry.meza@house.texas.gov

Sen. Nathan Johnson (D-District 16)

(512) 463-0116 | nathan.johnson@senate.texas.gov

Sen. Tan Parker (R-District 12)

(512) 463-0112 | tan.parker@senate.texas.gov