The following appears in today's Austin American Statesman (Feb. 8, 2008). This is potentially bad news for public access / community television in Texas. There are still several municipalities (like Austin and Dallas) who have existing franchise agreements that are grandfathered under the 2005 SB 5 legislation that eliminated municipal franchise agreements. If the basis of the cable industries suit is to challenge the grandfathering provision and enable all cable franchisees state-wide to obtain a state issued certificate of franchise authority, it will cut short anticipated window of time that Austin, Dallas, and a few others have to establish new revenue sources needed to maintain public access / community television.
A federal appeals court says Texas cable industry can go ahead with lawsuit challenging a state law
Court allows Texas cable industry to challenge state law
A federal appeals court ruled Thursday that the Texas cable industry can go ahead with a lawsuit challenging a state law that opened the state's television services market to more competition.
The industry maintains that the 2005 law is unfair to cable companies because it lets telephone companies offer service without having to abide by the same requirements that cable companies face.
An Austin federal court had ruled that the cable industry hadn't shown damage and thus had no standing to challenge the law.
The 5th Circuit Court of Appeals reversed that ruling.
"In light of today's ruling, we have confidence that we can present the facts to a fair and impartial court that will ultimately rule in the best interests of Texas and of fair competition," said Christine DeLoma, speaking for the Texas Cable Association.
