Network facilities franchise fees.

Houston Code of Ordinances § 40-335

in effect

Sec. 40-335. - Network facilities franchise fees. (a) The fee to be paid by a telecommunications provider subject to this article under any network facilities franchise shall be determined in accordance with applicable law in a competitively neutral manner by the director and set forth in a network facilities franchise approved by city council. (b) With each annual fee remittance, a telecommunications provider shall file a report with the city secretary and the director on a form promulgated by the director showing in detail the calculation of the fee for the preceding calendar year. An officer or authorized representative of the telecommunications provider shall certify 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 due inquiry. The report shall be treated as confidential information to the extent permitted by law. Upon written request by the director, a telecommunications provider shall verify the information contained in its report, and upon 30 days advance written notice, all non-customer specific records and other documents required for verification shall be subject to inspection by the director, expressly excluding any records, documents, or other writings the disclosure of which is prohibited by state or federal law, including the Electronic Communications Privacy Act, 18 U.S.C. Sec. 2701, et seq. Upon receipt of any such request, the telecommunications provider shall promptly designate or identify the specific information proposed to be withheld and the law supporting or authorizing its non-disclosure. (c) Payment due date. Each telecommunications provider shall remit fees on an annual basis. Payment shall be made on or before the payment date. Fees that are not received by the city by the payment date shall incur interest beginning on the date the payment is due at the rate of twelve percent per annum, compounded daily. (d) Circumvention of fee prohibited. A telecommunications provider shall not underpay fees due to the city, circumvent payment of the fee for use of the public way or evade payment of fees by barter, transfer of rights, or any other means that results in undercounting of the telecommunications providers' linear feet of network facilities in the public way within the city. (e) Leased network facilities. (1) A telecommunications provider may lease its network facilities or otherwise make its network facilities available, in whole or in part, to its customers in the ordinary provision of services, if the telecommunications provider retains the responsibility for servicing and repairing the network facilities. This shall not be construed to provide any person, other than an affiliate, with authority to place any facilities in the public way without a valid franchise granted by the city, if one is required. The director shall determine whether a franchise is required in accordance with applicable law, and such determination shall be made as if the third party were the owner of the network facilities used by the third party, rather than the telecommunications provider. A telecommunications provider shall notify the city within 30 days of any lease of its network facilities. (2) A telecommunications provider's acceptance of a network facilities franchise constitutes its agreement to notify its customers or subscribers making sales of telecommunications services through the use of its network facilities of the possible need for a certificate from the Public Utility Commission of Texas, an FCC license, other state or federal authorization, or city franchise. A telecommunications provider shall notify its existing customers or subscribers of the requirement of this provision within 30 days of the acquisition of each customer or subscriber. (f) Fees paid pursuant to this section shall constitute the sole compensation to the city for a telecommunications provider's use of the public way. (Ord. No. 98-593, § 1, 7-22-98; Ord. No. 2010-831, § 2(Exh. A), 10-27-2010)

Source: City of Houston, Code of Ordinances and City Charter (Municode Library, library.municode.com)URL: https://library.municode.com/tx/houston/codes/code_of_ordinances?nodeId=COOR_CH40STSI_ARTXIVGRPRTEPRPLTEFAACALUNPUWA_S40-335NEFAFRFEFetched: 10/26/2026