McAllen and Coalition of Cities File Lawsuit on Constitutionality of SB1004
Written by Post Public Information Representative, Sep 1, 2017, Comments Off
Courtesy Xochitl Mora,
Senate bill could hinder municipalities from regulation and collecting millions in fees
(McAllen, TX) -The City of McAllen and 21 other Texas cities officially filed lawsuit in Travis County against the State of Texas, challenging the constitutionality of SB 1004. The law, which was passed by the Texas Legislature earlier this year in the regular session, limits rental rates of cities’ right-of-ways to $250 per year, when the prevailing market rate is at least $1,500 per year.
The bill significantly restricts municipalities from regulating the construction, development and maintenance of network structures and wireless facilities (or nodes) in the public right-of-way and prohibits municipalities from entering into franchise agreements with these companies for the use of public right-of-way (ROW), creating statutory caps on fees charged for installing these nodes within the ROW. This bill takes effect September 1, 2017.
“SB 1004 is essentially a taxpayer subsidy to the telecommunications industry giants,” said City of McAllen Mayor Jim Darling. “We will fight this lawsuit in defense of our local taxpayers and for local control of our own right-of-ways.”
The coalition of cities strongly believes the law violates numerous provisions of the Texas Constitution, including:
- Article III, §52 which states that the Legislature has no power to authorize cities to grant public money or things of value to the any individual, association or corporation;
- Article XI, §3 which states that a city cannot make a donation to a corporation.
The bill, was signed by Governor Greg Abbott on June 9; the McAllen City Commission authorized the City Attorney’s Office to file the lawsuit and build a coalition of cities to join the lawsuit on July 10, 2017.
The 21 other cities who are a part of the lawsuit coalition include: Alamo; Alton; Balcones Heights; Boerne; Brownsville; Coppell; Dallas; Highland Village; Irving; La Feria; Lucas; Midlothian; Mission; Pharr; Rockport; Roma; Seagoville; Simonton; South Padre Island; Sugar Land; and Weslaco. The coalition is represented by Bob Heath, Gunner Seaquist, and Gregory Miller of Bickerstaff Heath Delgado Acosta, as well as the Law Offices of Snapper Carr.
The City of Austin has already filed a lawsuit challenging the the bill in federal court.
