Legislation passed in 2017 and 2019 continues to impact the City of Irving’s budget, reducing the amount it can collect from certain entities in the telecom and cable industries.
Passed in 2017, Texas Senate Bill (SB) 1004 limits the amount of revenue cities can collect from telecommunications providers for the deployment of network nodes in public rights-of-way. The small-cell location bills (SB 1004 and its companion, HB 2838 (2017)) limit what cities could charge wireless service providers for use of a public right-of-way to $250 per location, while market analysis showed the value was between $1,000 to $2,500 per location. Cities cannot control the locations, even on public property, and are under time limits to approve permits.
In 2019, the Texas Legislature approved SB 1152, a bill that reduced revenue municipalities had been collecting for years under cable franchises. Cable franchise legislation (SB 1152 and its companion, HB 3535 (2019)) allows companies that provide cable services and telecommunication services to choose whether they want to pay the telecommunications fee or the cable franchise fee. They argued this would reduce charges to the end customer.
Since SB 1004 became effective in 2017, Irving has approved 653 small-cell locations. Assuming a market rate of $1,250 a month – an average of nearby cities high and low rates – $3.6 million could have been collected by the city. Actual collections are about $720,000.
Since SB 1152 became effective in 2019, the city estimates an annual revenue loss in landline and franchise fees of about $2.8 million per year or the equivalent of three-quarters of a cent on the property tax rate.
Contact Legislators To comment on this legislation, contact the following members:
SB 1004, SB 1152
Sen. Kelly Hancock, R-District 9
306 W Seventh Street, Suite 508, Fort Worth, TX 76102
(817) 514-3804 | kelly.hancock@senate.texas.gov
HB 2838
Rep. Charlie Geren, R-District 99
6713 Telephone Rd Suite 301, Lake Worth, TX 76135
(817) 237-2251 | Charlie.Geren@house.texas.gov
HB 3535
Rep. Dade Phelan
812 North 16th St., Orange, Texas 77630
(512) 463-1000 | dade.phelan@house.texas.gov
