More than 50 Texas cities, including Dallas, Austin, San Antonio, Houston, and El Paso, filed a lawsuit in the Texas Supreme Court challenging two state laws they say grant illegal fee discounts to cable and telecommunications providers, potentially costing municipalities millions of dollars in lost revenue.
The cities filed under the court’s original jurisdiction, which handles disputes involving state laws and local governments. Petitioners include both large metropolitan areas and smaller municipalities that collect franchise and right-of-way fees from companies providing cable and telecom services.
The lawsuit contends that the laws reduce or waive payments that providers historically made to cities, shifting financial burdens to municipalities and taxpayers. The contested provisions apply statewide to companies operating networks in public rights-of-way.
City officials ask the court to declare the laws unconstitutional under provisions of the Texas Constitution that limit gifts or subsidies to private entities. The petition seeks injunctive relief to prevent state officials from enforcing the fee changes and estimates multimillion-dollar annual revenue losses for the group of cities if the laws remain in effect.
The filing notes that the revenue supports municipal services including public safety, infrastructure, and right-of-way management. While the lawsuit proceeds, cities continue collecting fees under protest.
The petition describes the disputed statutes as amendments to existing telecommunications and cable franchising laws and recounts legislative history, including committee discussions and bill analyses. Cities argue that the laws interfere with longstanding municipal authority to manage and charge for commercial use of public rights-of-way.
The Attorney General of Texas will defend the state and the validity of the contested statutes. The Supreme Court will set a briefing schedule for responses and later consider oral arguments. The court’s ruling will apply statewide and bind all municipalities and lower courts regarding the interpretation of the laws.
The lawsuit seeks only declaratory and injunctive relief and does not request monetary damages from the state.
