✅Relating to entities that provide video services.

✅ SB 924: Stops Cities from Adding New Fees to Satellite and Streaming

What it says it does:
SB 924 updates the Utilities Code to define what counts as a “video service” provider in Texas. It says cities can only charge a franchise fee to companies that actually use public rights-of-way to deliver their service.

What it actually changes:
It blocks cities from applying that 5 percent fee to satellite and streaming platforms. Only wireline providers that dig up streets or use poles are still required to pay. This keeps municipalities from stretching the law to cover services that do not use local infrastructure.

Who is pushing for it:
Satellite and cable companies such as DISH, DIRECTV, Charter, and Comcast supported the bill. They argued it brings fairness and stops new costs from being pushed onto customers. Consumer advocates also supported the idea of preventing pass-through fees.

Who benefits:
Everyday Texans who subscribe to streaming or satellite TV benefit because their bills will not include a new city fee. Existing cable and wireline providers gain clarity on what they owe without facing new competitors being taxed differently.

Who gets left out or exposed:
Cities lose a possible future source of revenue. The Texas Municipal League and major municipalities opposed the bill because it limits their ability to collect money from digital services that do not use city property.

Why this matters long term:
It protects consumers from higher monthly costs and prevents cities from expanding fees into areas where they have no direct expenses. It also draws a clear line for future technologies so that only companies using public infrastructure pay the fee.

What to watch next:
As technology evolves, lawmakers will need to make sure definitions still match real-world infrastructure costs. A future review process could help keep the law fair without opening new fee loopholes.

Bottom line:
SB 924 keeps fees tied to actual city infrastructure use. It prevents unnecessary costs for Texans and stops local governments from creating new charges for services that do not rely on their property.

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