Tex. Governor to Give Final Okay for Video Bill, Sources Say
Tex. Gov. Rick Perry (R), reversing his ground, will allow final approval of video franchising rules that had been delayed, sources at the state capitol said late Tues. (CD Aug 17 p1). Perry and Lt. Gov. David Dewhurst, who signed the bill Tues., had previously signaled they'd block any bill, including video franchising, until education initiatives were passed (CD July 21 p2). With time running out on the Tex. legislature’s 2nd special session, Dewhurst and Perry decided against opposing the bill, we're told. Meanwhile, one of the next battleground states for such legislation may be N.J., where lawmakers are expected to return to the capitol later this year.
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Sources familiar with Perry’s thinking told us he'll either: (1) Sign SB-5 to enact a state authority for video franchising, taking such powers away from municipalities. (2) Take no action on the bill, which passed Tex. House and Senate overwhelmingly. If Perry doesn’t block the bill within less than a month after lawmakers depart Austin, it becomes law, deputy press secy. Robert Black told us Wed. The special legislative session called by Perry is scheduled to end 11:59 p.m. local time Fri., and lawmakers haven’t agreed on how to fund schools. “It looks to me like they would be fighting the clock at this point,” Black said. Lawmakers are likely to work out their differences after the session, an aide to Speaker Tom Craddick (R) told us.
Officially, Gov. Perry hasn’t announced his intention to support the franchise bill backed by Bells, including SBC and Verizon, and opposed by cable operators. “He’s reviewing the bill, and will make an announcement at the appropriate time,” Black said. “That time hasn’t been decided yet,” though it would likely be next week at the earliest. Many observers said Perry has already made up his mind. “Either he’s going to sign it, or it will become law” without his signature, a spokesman for Sen. Troy Fraser (R), who wrote the video bill, told us Wed.
The Tex. legislation would speed up approvals to sell TV service, starting with Bells this year. In what cable officials have called a disparity, most cable operators wouldn’t be eligible to apply for statewide certification to sell video services for several years. Time Warner, Comcast, Cox and Charter have systems in the state. Officials at those companies didn’t comment on the franchising legislation.
Cable officials have said litigation is likely when the video bill is approved (CD July 18 Special Report). That sentiment was repeated in an Aug. 10 statement from the Tex. Cable & Telecom Assn. (TCTA), which has lobbied against the bill. “We would expect there to be a number of legal challenges,” TCTA said. “The next step in this process will almost certainly be the courts, where the substantial legal issues contained in this legislation will be resolved in a more thoughtful way.” TCTA officials weren’t available for further comment Wed. SBC and Verizon officials declined to comment on SB-5, citing the fact that Perry hasn’t yet formally approved statewide video franchising.
The next goal for Bells is to get similar rules passed in other states. N.J. is shaping up to be another battleground, industry officials said. “Obviously, it sets a precedent that other states will follow,” a Verizon spokesman said, speaking generally. He confirmed that the Bell hopes N.J. lawmakers will consider a measure similar to the one in Tex. “The big picture on this is that the BOCs have a very attractive message, which is that they're offering competition that people have been looking for,” said Media Access Project Pres. Andrew Schwartzman. “The fact that the history of the Baby Bells’ ventures into video has been one of humongous flops, and their promises about broadband deployment are more significant for breaches than for fulfilment, seems not to have landed on a lot of the legislators.”